Correlation Between Impiana Hotels and Sime Darby
Can any of the company-specific risk be diversified away by investing in both Impiana Hotels and Sime Darby 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 Sime Darby 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 Sime Darby Plantation, you can compare the effects of market volatilities on Impiana Hotels and Sime Darby 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 Sime Darby. Check out your portfolio center. Please also check ongoing floating volatility patterns of Impiana Hotels and Sime Darby.
Diversification Opportunities for Impiana Hotels and Sime Darby
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Impiana and Sime is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Impiana Hotels Bhd and Sime Darby Plantation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sime Darby Plantation 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 Sime Darby. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sime Darby Plantation has no effect on the direction of Impiana Hotels i.e., Impiana Hotels and Sime Darby go up and down completely randomly.
Pair Corralation between Impiana Hotels and Sime Darby
Assuming the 90 days trading horizon Impiana Hotels is expected to generate 5.06 times less return on investment than Sime Darby. In addition to that, Impiana Hotels is 2.47 times more volatile than Sime Darby Plantation. It trades about 0.0 of its total potential returns per unit of risk. Sime Darby Plantation is currently generating about 0.04 per unit of volatility. If you would invest 439.00 in Sime Darby Plantation on October 29, 2024 and sell it today you would earn a total of 51.00 from holding Sime Darby Plantation or generate 11.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Impiana Hotels Bhd vs. Sime Darby Plantation
Performance |
| Timeline |
| Impiana Hotels Bhd |
| Sime Darby Plantation |
Impiana Hotels and Sime Darby Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Impiana Hotels and Sime Darby
The main advantage of trading using opposite Impiana Hotels and Sime Darby positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Impiana Hotels position performs unexpectedly, Sime Darby 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 Sime Darby will offset losses from the drop in Sime Darby's long position.| Impiana Hotels vs. Datasonic Group Bhd | Impiana Hotels vs. Carlsberg Brewery Malaysia | Impiana Hotels vs. Homeritz Bhd | Impiana Hotels vs. Steel Hawk Berhad |
| Sime Darby vs. Malayan Banking Bhd | Sime Darby vs. Public Bank Bhd | Sime Darby vs. Petronas Chemicals Group | Sime Darby vs. Tenaga Nasional 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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