Correlation Between Rubberex M and SSF Home
Can any of the company-specific risk be diversified away by investing in both Rubberex M and SSF Home 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 Rubberex M and SSF Home into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubberex M and SSF Home Group, you can compare the effects of market volatilities on Rubberex M and SSF Home 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 Rubberex M with a short position of SSF Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubberex M and SSF Home.
Diversification Opportunities for Rubberex M and SSF Home
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rubberex and SSF is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Rubberex M and SSF Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSF Home Group and Rubberex M 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 Rubberex M are associated (or correlated) with SSF Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSF Home Group has no effect on the direction of Rubberex M i.e., Rubberex M and SSF Home go up and down completely randomly.
Pair Corralation between Rubberex M and SSF Home
Assuming the 90 days trading horizon Rubberex M is expected to under-perform the SSF Home. In addition to that, Rubberex M is 1.62 times more volatile than SSF Home Group. It trades about -0.02 of its total potential returns per unit of risk. SSF Home Group is currently generating about 0.07 per unit of volatility. If you would invest 28.00 in SSF Home Group on September 3, 2024 and sell it today you would earn a total of 6.00 from holding SSF Home Group or generate 21.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rubberex M vs. SSF Home Group
Performance |
| Timeline |
| Rubberex M |
| SSF Home Group |
Rubberex M and SSF Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubberex M and SSF Home
The main advantage of trading using opposite Rubberex M and SSF Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubberex M position performs unexpectedly, SSF Home 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 SSF Home will offset losses from the drop in SSF Home's long position.| Rubberex M vs. Kossan Rubber Industries | Rubberex M vs. Minetech Resources Bhd | Rubberex M vs. Swift Haulage Bhd | Rubberex M vs. Insas Bhd |
| SSF Home vs. Choo Bee Metal | SSF Home vs. EA Technique M | SSF Home vs. Resintech Bhd | SSF Home vs. Minetech Resources 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |