Correlation Between PGF Capital and Sports Toto
Can any of the company-specific risk be diversified away by investing in both PGF Capital and Sports Toto 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 PGF Capital and Sports Toto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PGF Capital Bhd and Sports Toto Berhad, you can compare the effects of market volatilities on PGF Capital and Sports Toto 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 PGF Capital with a short position of Sports Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of PGF Capital and Sports Toto.
Diversification Opportunities for PGF Capital and Sports Toto
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between PGF and Sports is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding PGF Capital Bhd and Sports Toto Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sports Toto Berhad and PGF Capital 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 PGF Capital Bhd are associated (or correlated) with Sports Toto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sports Toto Berhad has no effect on the direction of PGF Capital i.e., PGF Capital and Sports Toto go up and down completely randomly.
Pair Corralation between PGF Capital and Sports Toto
Assuming the 90 days trading horizon PGF Capital Bhd is expected to generate 1.71 times more return on investment than Sports Toto. However, PGF Capital is 1.71 times more volatile than Sports Toto Berhad. It trades about 0.02 of its potential returns per unit of risk. Sports Toto Berhad is currently generating about -0.01 per unit of risk. If you would invest 214.00 in PGF Capital Bhd on September 13, 2024 and sell it today you would earn a total of 7.00 from holding PGF Capital Bhd or generate 3.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.2% |
| Values | Daily Returns |
PGF Capital Bhd vs. Sports Toto Berhad
Performance |
| Timeline |
| PGF Capital Bhd |
| Sports Toto Berhad |
PGF Capital and Sports Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PGF Capital and Sports Toto
The main advantage of trading using opposite PGF Capital and Sports Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PGF Capital position performs unexpectedly, Sports Toto 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 Sports Toto will offset losses from the drop in Sports Toto's long position.| PGF Capital vs. CSC Steel Holdings | PGF Capital vs. ES Ceramics Technology | PGF Capital vs. Sports Toto Berhad | PGF Capital vs. Press Metal Bhd |
| Sports Toto vs. Impiana Hotels Bhd | Sports Toto vs. Al Aqar Healthcare | Sports Toto vs. PMB Technology Bhd | Sports Toto vs. Digistar 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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