Correlation Between Star Media and Choo Bee
Can any of the company-specific risk be diversified away by investing in both Star Media and Choo Bee 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 Star Media and Choo Bee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Media Group and Choo Bee Metal, you can compare the effects of market volatilities on Star Media and Choo Bee 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 Star Media with a short position of Choo Bee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Media and Choo Bee.
Diversification Opportunities for Star Media and Choo Bee
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Star and Choo is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Star Media Group and Choo Bee Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choo Bee Metal and Star Media 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 Star Media Group are associated (or correlated) with Choo Bee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choo Bee Metal has no effect on the direction of Star Media i.e., Star Media and Choo Bee go up and down completely randomly.
Pair Corralation between Star Media and Choo Bee
Assuming the 90 days trading horizon Star Media Group is expected to generate 1.21 times more return on investment than Choo Bee. However, Star Media is 1.21 times more volatile than Choo Bee Metal. It trades about 0.07 of its potential returns per unit of risk. Choo Bee Metal is currently generating about -0.15 per unit of risk. If you would invest 40.00 in Star Media Group on December 30, 2024 and sell it today you would earn a total of 3.00 from holding Star Media Group or generate 7.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.36% |
Values | Daily Returns |
Star Media Group vs. Choo Bee Metal
Performance |
Timeline |
Star Media Group |
Choo Bee Metal |
Star Media and Choo Bee Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Star Media and Choo Bee
The main advantage of trading using opposite Star Media and Choo Bee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Media position performs unexpectedly, Choo Bee 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 Choo Bee will offset losses from the drop in Choo Bee's long position.Star Media vs. Tex Cycle Technology | Star Media vs. Privasia Technology Bhd | Star Media vs. Bank Islam Malaysia | Star Media vs. Awanbiru Technology Bhd |
Choo Bee vs. Alliance Financial Group | Choo Bee vs. RHB Bank Bhd | Choo Bee vs. Coraza Integrated Technology | Choo Bee vs. Techbond Group Bhd |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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