Correlation Between Sports Toto and Impiana Hotels
Can any of the company-specific risk be diversified away by investing in both Sports Toto and Impiana Hotels 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 Sports Toto and Impiana Hotels into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sports Toto Berhad and Impiana Hotels Bhd, you can compare the effects of market volatilities on Sports Toto and Impiana Hotels 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 Sports Toto with a short position of Impiana Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sports Toto and Impiana Hotels.
Diversification Opportunities for Sports Toto and Impiana Hotels
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sports and Impiana is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Sports Toto Berhad and Impiana Hotels Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impiana Hotels Bhd and Sports Toto 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 Sports Toto Berhad are associated (or correlated) with Impiana Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impiana Hotels Bhd has no effect on the direction of Sports Toto i.e., Sports Toto and Impiana Hotels go up and down completely randomly.
Pair Corralation between Sports Toto and Impiana Hotels
Assuming the 90 days trading horizon Sports Toto Berhad is expected to generate 0.46 times more return on investment than Impiana Hotels. However, Sports Toto Berhad is 2.17 times less risky than Impiana Hotels. It trades about -0.03 of its potential returns per unit of risk. Impiana Hotels Bhd is currently generating about -0.03 per unit of risk. If you would invest 150.00 in Sports Toto Berhad on December 2, 2024 and sell it today you would lose (3.00) from holding Sports Toto Berhad or give up 2.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Sports Toto Berhad vs. Impiana Hotels Bhd
Performance |
Timeline |
Sports Toto Berhad |
Impiana Hotels Bhd |
Sports Toto and Impiana Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sports Toto and Impiana Hotels
The main advantage of trading using opposite Sports Toto and Impiana Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sports Toto position performs unexpectedly, Impiana Hotels 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 Impiana Hotels will offset losses from the drop in Impiana Hotels' long position.Sports Toto vs. Resintech Bhd | Sports Toto vs. Duopharma Biotech Bhd | Sports Toto vs. Melewar Industrial Group | Sports Toto vs. EA Technique M |
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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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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