Correlation Between AMMB Holdings and Dolphin Entertainment
Can any of the company-specific risk be diversified away by investing in both AMMB Holdings and Dolphin Entertainment 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 AMMB Holdings and Dolphin Entertainment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMMB Holdings Berhad and Dolphin Entertainment, you can compare the effects of market volatilities on AMMB Holdings and Dolphin Entertainment 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 AMMB Holdings with a short position of Dolphin Entertainment. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMMB Holdings and Dolphin Entertainment.
Diversification Opportunities for AMMB Holdings and Dolphin Entertainment
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between AMMB and Dolphin is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding AMMB Holdings Berhad and Dolphin Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dolphin Entertainment and AMMB Holdings 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 AMMB Holdings Berhad are associated (or correlated) with Dolphin Entertainment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dolphin Entertainment has no effect on the direction of AMMB Holdings i.e., AMMB Holdings and Dolphin Entertainment go up and down completely randomly.
Pair Corralation between AMMB Holdings and Dolphin Entertainment
Assuming the 90 days horizon AMMB Holdings Berhad is expected to generate 0.31 times more return on investment than Dolphin Entertainment. However, AMMB Holdings Berhad is 3.26 times less risky than Dolphin Entertainment. It trades about 0.08 of its potential returns per unit of risk. Dolphin Entertainment is currently generating about -0.04 per unit of risk. If you would invest 55.00 in AMMB Holdings Berhad on August 26, 2024 and sell it today you would earn a total of 35.00 from holding AMMB Holdings Berhad or generate 63.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMMB Holdings Berhad vs. Dolphin Entertainment
Performance |
| Timeline |
| AMMB Holdings Berhad |
| Dolphin Entertainment |
AMMB Holdings and Dolphin Entertainment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMMB Holdings and Dolphin Entertainment
The main advantage of trading using opposite AMMB Holdings and Dolphin Entertainment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMMB Holdings position performs unexpectedly, Dolphin Entertainment 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 Dolphin Entertainment will offset losses from the drop in Dolphin Entertainment's long position.| AMMB Holdings vs. Entravision Communications | AMMB Holdings vs. Dolphin Entertainment | AMMB Holdings vs. 51Talk Online Education | AMMB Holdings vs. Xunlei Ltd Adr |
| Dolphin Entertainment vs. Hall of Fame | Dolphin Entertainment vs. Wisekey International Holding | Dolphin Entertainment vs. Oriental Culture Holding |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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