Correlation Between PTT Synergy and Homeritz Bhd
Can any of the company-specific risk be diversified away by investing in both PTT Synergy and Homeritz Bhd 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 PTT Synergy and Homeritz Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PTT Synergy Group and Homeritz Bhd, you can compare the effects of market volatilities on PTT Synergy and Homeritz Bhd 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 PTT Synergy with a short position of Homeritz Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of PTT Synergy and Homeritz Bhd.
Diversification Opportunities for PTT Synergy and Homeritz Bhd
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between PTT and Homeritz is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding PTT Synergy Group and Homeritz Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Homeritz Bhd and PTT Synergy 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 PTT Synergy Group are associated (or correlated) with Homeritz Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Homeritz Bhd has no effect on the direction of PTT Synergy i.e., PTT Synergy and Homeritz Bhd go up and down completely randomly.
Pair Corralation between PTT Synergy and Homeritz Bhd
Assuming the 90 days trading horizon PTT Synergy is expected to generate 1.87 times less return on investment than Homeritz Bhd. In addition to that, PTT Synergy is 1.23 times more volatile than Homeritz Bhd. It trades about 0.03 of its total potential returns per unit of risk. Homeritz Bhd is currently generating about 0.07 per unit of volatility. If you would invest 57.00 in Homeritz Bhd on September 20, 2024 and sell it today you would earn a total of 4.00 from holding Homeritz Bhd or generate 7.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
PTT Synergy Group vs. Homeritz Bhd
Performance |
Timeline |
PTT Synergy Group |
Homeritz Bhd |
PTT Synergy and Homeritz Bhd Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with PTT Synergy and Homeritz Bhd
The main advantage of trading using opposite PTT Synergy and Homeritz Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PTT Synergy position performs unexpectedly, Homeritz Bhd 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 Homeritz Bhd will offset losses from the drop in Homeritz Bhd's long position.PTT Synergy vs. Hong Leong Bank | ||
PTT Synergy vs. Berjaya Food Bhd | ||
PTT Synergy vs. Apollo Food Holdings | ||
PTT Synergy vs. Lotte Chemical Titan |
Homeritz Bhd vs. Malayan Banking Bhd | ||
Homeritz Bhd vs. Public Bank Bhd | ||
Homeritz Bhd vs. Petronas Chemicals Group | ||
Homeritz Bhd vs. Tenaga Nasional 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Other Complementary Tools
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |