Correlation Between Tex Cycle and Swift Haulage
Can any of the company-specific risk be diversified away by investing in both Tex Cycle and Swift Haulage 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 Tex Cycle and Swift Haulage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tex Cycle Technology and Swift Haulage Bhd, you can compare the effects of market volatilities on Tex Cycle and Swift Haulage 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 Tex Cycle with a short position of Swift Haulage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tex Cycle and Swift Haulage.
Diversification Opportunities for Tex Cycle and Swift Haulage
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tex and Swift is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Tex Cycle Technology and Swift Haulage Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swift Haulage Bhd and Tex Cycle 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 Tex Cycle Technology are associated (or correlated) with Swift Haulage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swift Haulage Bhd has no effect on the direction of Tex Cycle i.e., Tex Cycle and Swift Haulage go up and down completely randomly.
Pair Corralation between Tex Cycle and Swift Haulage
Assuming the 90 days trading horizon Tex Cycle Technology is expected to generate 0.98 times more return on investment than Swift Haulage. However, Tex Cycle Technology is 1.02 times less risky than Swift Haulage. It trades about 0.04 of its potential returns per unit of risk. Swift Haulage Bhd is currently generating about -0.08 per unit of risk. If you would invest 104.00 in Tex Cycle Technology on November 28, 2024 and sell it today you would earn a total of 1.00 from holding Tex Cycle Technology or generate 0.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Tex Cycle Technology vs. Swift Haulage Bhd
Performance |
| Timeline |
| Tex Cycle Technology |
| Swift Haulage Bhd |
Tex Cycle and Swift Haulage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tex Cycle and Swift Haulage
The main advantage of trading using opposite Tex Cycle and Swift Haulage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tex Cycle position performs unexpectedly, Swift Haulage 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 Swift Haulage will offset losses from the drop in Swift Haulage's long position.| Tex Cycle vs. PMB Technology Bhd | Tex Cycle vs. Press Metal Bhd | Tex Cycle vs. Eonmetall Group Bhd | Tex Cycle vs. Sungei Bagan Rubber |
| Swift Haulage vs. Supercomnet Technologies Bhd | Swift Haulage vs. CB Industrial Product | Swift Haulage vs. MClean Technologies Bhd | Swift Haulage vs. Shangri La Hotels |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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