Correlation Between 51Talk Online and AMMB Holdings
Can any of the company-specific risk be diversified away by investing in both 51Talk Online 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 51Talk Online and AMMB Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 51Talk Online Education and AMMB Holdings Berhad, you can compare the effects of market volatilities on 51Talk Online 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 51Talk Online with a short position of AMMB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of 51Talk Online and AMMB Holdings.
Diversification Opportunities for 51Talk Online and AMMB Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 51Talk and AMMB is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding 51Talk Online Education and AMMB Holdings Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMMB Holdings Berhad and 51Talk Online 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 51Talk Online Education 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 Berhad has no effect on the direction of 51Talk Online i.e., 51Talk Online and AMMB Holdings go up and down completely randomly.
Pair Corralation between 51Talk Online and AMMB Holdings
Considering the 90-day investment horizon 51Talk Online Education is expected to generate 2.31 times more return on investment than AMMB Holdings. However, 51Talk Online is 2.31 times more volatile than AMMB Holdings Berhad. It trades about 0.13 of its potential returns per unit of risk. AMMB Holdings Berhad is currently generating about 0.09 per unit of risk. If you would invest 745.00 in 51Talk Online Education on August 29, 2024 and sell it today you would earn a total of 705.00 from holding 51Talk Online Education or generate 94.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
51Talk Online Education vs. AMMB Holdings Berhad
Performance |
| Timeline |
| 51Talk Online Education |
| AMMB Holdings Berhad |
51Talk Online and AMMB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 51Talk Online and AMMB Holdings
The main advantage of trading using opposite 51Talk Online and AMMB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 51Talk Online 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.| 51Talk Online vs. Gaotu Techedu DRC | 51Talk Online vs. TAL Education Group | 51Talk Online vs. Strategic Education | 51Talk Online vs. Vasta Platform |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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