Correlation Between STI Education and Prime Media
Can any of the company-specific risk be diversified away by investing in both STI Education and Prime Media 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 STI Education and Prime Media into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STI Education Systems and Prime Media Holdings, you can compare the effects of market volatilities on STI Education and Prime Media 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 STI Education with a short position of Prime Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of STI Education and Prime Media.
Diversification Opportunities for STI Education and Prime Media
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between STI and Prime is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding STI Education Systems and Prime Media Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prime Media Holdings and STI Education 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 STI Education Systems are associated (or correlated) with Prime Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prime Media Holdings has no effect on the direction of STI Education i.e., STI Education and Prime Media go up and down completely randomly.
Pair Corralation between STI Education and Prime Media
Assuming the 90 days trading horizon STI Education Systems is expected to generate 0.67 times more return on investment than Prime Media. However, STI Education Systems is 1.49 times less risky than Prime Media. It trades about 0.13 of its potential returns per unit of risk. Prime Media Holdings is currently generating about 0.01 per unit of risk. If you would invest 33.00 in STI Education Systems on September 1, 2024 and sell it today you would earn a total of 88.00 from holding STI Education Systems or generate 266.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.18% |
| Values | Daily Returns |
STI Education Systems vs. Prime Media Holdings
Performance |
| Timeline |
| STI Education Systems |
| Prime Media Holdings |
STI Education and Prime Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STI Education and Prime Media
The main advantage of trading using opposite STI Education and Prime Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STI Education position performs unexpectedly, Prime Media 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 Prime Media will offset losses from the drop in Prime Media's long position.| STI Education vs. Allhome Corp | STI Education vs. LFM Properties Corp | STI Education vs. Altus Property Ventures | STI Education vs. Monde Nissin Corp |
| Prime Media vs. GT Capital Holdings | Prime Media vs. Allhome Corp | Prime Media vs. Jollibee Foods Corp | Prime Media vs. LFM Properties Corp |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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