Correlation Between Rubberex M and AMMB Holdings
Can any of the company-specific risk be diversified away by investing in both Rubberex M and AMMB Holdings 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 AMMB Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubberex M and AMMB Holdings Bhd, you can compare the effects of market volatilities on Rubberex M and AMMB Holdings 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 AMMB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubberex M and AMMB Holdings.
Diversification Opportunities for Rubberex M and AMMB Holdings
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Rubberex and AMMB is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Rubberex M and AMMB Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMMB Holdings Bhd 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 AMMB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMMB Holdings Bhd has no effect on the direction of Rubberex M i.e., Rubberex M and AMMB Holdings go up and down completely randomly.
Pair Corralation between Rubberex M and AMMB Holdings
Assuming the 90 days trading horizon Rubberex M is expected to generate 7.44 times less return on investment than AMMB Holdings. In addition to that, Rubberex M is 1.77 times more volatile than AMMB Holdings Bhd. It trades about 0.01 of its total potential returns per unit of risk. AMMB Holdings Bhd is currently generating about 0.18 per unit of volatility. If you would invest 506.00 in AMMB Holdings Bhd on September 1, 2024 and sell it today you would earn a total of 33.00 from holding AMMB Holdings Bhd or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Rubberex M vs. AMMB Holdings Bhd
Performance |
| Timeline |
| Rubberex M |
| AMMB Holdings Bhd |
Rubberex M and AMMB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubberex M and AMMB Holdings
The main advantage of trading using opposite Rubberex M and AMMB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubberex M position performs unexpectedly, AMMB Holdings 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 AMMB Holdings will offset losses from the drop in AMMB Holdings' long position.| Rubberex M vs. Kossan Rubber Industries | Rubberex M vs. Digistar Bhd | Rubberex M vs. Minetech Resources Bhd | Rubberex M vs. Swift Haulage Bhd |
| AMMB Holdings vs. Diversified Gateway Solutions | AMMB Holdings vs. TAS Offshore Bhd | AMMB Holdings vs. Cosmos Technology International | AMMB Holdings vs. Icon Offshore 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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