Correlation Between Sime Darby and Exor NV
Can any of the company-specific risk be diversified away by investing in both Sime Darby and Exor NV 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 Sime Darby and Exor NV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sime Darby Bhd and Exor NV, you can compare the effects of market volatilities on Sime Darby and Exor NV 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 Sime Darby with a short position of Exor NV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sime Darby and Exor NV.
Diversification Opportunities for Sime Darby and Exor NV
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sime and Exor is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sime Darby Bhd and Exor NV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Exor NV and Sime Darby 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 Sime Darby Bhd are associated (or correlated) with Exor NV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exor NV has no effect on the direction of Sime Darby i.e., Sime Darby and Exor NV go up and down completely randomly.
Pair Corralation between Sime Darby and Exor NV
Assuming the 90 days horizon Sime Darby is expected to generate 1.03 times less return on investment than Exor NV. In addition to that, Sime Darby is 1.62 times more volatile than Exor NV. It trades about 0.02 of its total potential returns per unit of risk. Exor NV is currently generating about 0.04 per unit of volatility. If you would invest 9,456 in Exor NV on August 28, 2024 and sell it today you would earn a total of 822.00 from holding Exor NV or generate 8.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 74.35% |
| Values | Daily Returns |
Sime Darby Bhd vs. Exor NV
Performance |
| Timeline |
| Sime Darby Bhd |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Exor NV |
Sime Darby and Exor NV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sime Darby and Exor NV
The main advantage of trading using opposite Sime Darby and Exor NV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sime Darby position performs unexpectedly, Exor NV 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 Exor NV will offset losses from the drop in Exor NV's long position.| Sime Darby vs. Zapp Electric Vehicles | Sime Darby vs. First Hydrogen Corp | Sime Darby vs. Guangzhou Automobile Group | Sime Darby vs. Phoenix Motor Common |
| Exor NV vs. Zapp Electric Vehicles | Exor NV vs. Guangzhou Automobile Group | Exor NV vs. NFI Group | Exor NV vs. Honda Motor Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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