Correlation Between Impiana Hotels and Sunway Construction
Can any of the company-specific risk be diversified away by investing in both Impiana Hotels and Sunway Construction at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Impiana Hotels and Sunway Construction into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Impiana Hotels Bhd and Sunway Construction Group, you can compare the effects of market volatilities on Impiana Hotels and Sunway Construction and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Impiana Hotels with a short position of Sunway Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impiana Hotels and Sunway Construction.
Diversification Opportunities for Impiana Hotels and Sunway Construction
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Impiana and Sunway is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Impiana Hotels Bhd and Sunway Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunway Construction and Impiana Hotels is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Impiana Hotels Bhd are associated (or correlated) with Sunway Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunway Construction has no effect on the direction of Impiana Hotels i.e., Impiana Hotels and Sunway Construction go up and down completely randomly.
Pair Corralation between Impiana Hotels and Sunway Construction
Assuming the 90 days trading horizon Impiana Hotels Bhd is expected to generate 1.33 times more return on investment than Sunway Construction. However, Impiana Hotels is 1.33 times more volatile than Sunway Construction Group. It trades about 0.02 of its potential returns per unit of risk. Sunway Construction Group is currently generating about 0.0 per unit of risk. If you would invest 21.00 in Impiana Hotels Bhd on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Impiana Hotels Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impiana Hotels Bhd vs. Sunway Construction Group
Performance |
| Timeline |
| Impiana Hotels Bhd |
| Sunway Construction |
Impiana Hotels and Sunway Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impiana Hotels and Sunway Construction
The main advantage of trading using opposite Impiana Hotels and Sunway Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impiana Hotels position performs unexpectedly, Sunway Construction can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sunway Construction will offset losses from the drop in Sunway Construction's long position.| Impiana Hotels vs. Digistar Bhd | Impiana Hotels vs. Minetech Resources Bhd | Impiana Hotels vs. OpenSys M Bhd | Impiana Hotels vs. Insas Bhd |
| Sunway Construction vs. Cloudpoint Technology Berhad | Sunway Construction vs. ES Ceramics Technology | Sunway Construction vs. Privasia Technology Bhd | Sunway Construction vs. Computer Forms Bhd |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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