Correlation Between Techfast Holdings and Insas Bhd
Can any of the company-specific risk be diversified away by investing in both Techfast Holdings and Insas 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 Techfast Holdings and Insas Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Techfast Holdings Bhd and Insas Bhd, you can compare the effects of market volatilities on Techfast Holdings and Insas 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 Techfast Holdings with a short position of Insas Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Techfast Holdings and Insas Bhd.
Diversification Opportunities for Techfast Holdings and Insas Bhd
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Techfast and Insas is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Techfast Holdings Bhd and Insas Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insas Bhd and Techfast Holdings 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 Techfast Holdings Bhd are associated (or correlated) with Insas Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insas Bhd has no effect on the direction of Techfast Holdings i.e., Techfast Holdings and Insas Bhd go up and down completely randomly.
Pair Corralation between Techfast Holdings and Insas Bhd
Assuming the 90 days trading horizon Techfast Holdings Bhd is expected to under-perform the Insas Bhd. In addition to that, Techfast Holdings is 2.87 times more volatile than Insas Bhd. It trades about -0.08 of its total potential returns per unit of risk. Insas Bhd is currently generating about -0.09 per unit of volatility. If you would invest 97.00 in Insas Bhd on August 31, 2024 and sell it today you would lose (3.00) from holding Insas Bhd or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Techfast Holdings Bhd vs. Insas Bhd
Performance |
| Timeline |
| Techfast Holdings Bhd |
| Insas Bhd |
Techfast Holdings and Insas Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Techfast Holdings and Insas Bhd
The main advantage of trading using opposite Techfast Holdings and Insas Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Techfast Holdings position performs unexpectedly, Insas 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 Insas Bhd will offset losses from the drop in Insas Bhd's long position.| Techfast Holdings vs. Hengyuan Refining | Techfast Holdings vs. Digistar Bhd | Techfast Holdings vs. Minetech Resources Bhd | Techfast Holdings vs. Swift Haulage Bhd |
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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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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