Correlation Between MClean Technologies and TAS Offshore
Can any of the company-specific risk be diversified away by investing in both MClean Technologies and TAS Offshore 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 MClean Technologies and TAS Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MClean Technologies Bhd and TAS Offshore Bhd, you can compare the effects of market volatilities on MClean Technologies and TAS Offshore 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 MClean Technologies with a short position of TAS Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of MClean Technologies and TAS Offshore.
Diversification Opportunities for MClean Technologies and TAS Offshore
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between MClean and TAS is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding MClean Technologies Bhd and TAS Offshore Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAS Offshore Bhd and MClean Technologies 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 MClean Technologies Bhd are associated (or correlated) with TAS Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAS Offshore Bhd has no effect on the direction of MClean Technologies i.e., MClean Technologies and TAS Offshore go up and down completely randomly.
Pair Corralation between MClean Technologies and TAS Offshore
Assuming the 90 days trading horizon MClean Technologies is expected to generate 1.15 times less return on investment than TAS Offshore. In addition to that, MClean Technologies is 1.58 times more volatile than TAS Offshore Bhd. It trades about 0.06 of its total potential returns per unit of risk. TAS Offshore Bhd is currently generating about 0.1 per unit of volatility. If you would invest 19.00 in TAS Offshore Bhd on September 2, 2024 and sell it today you would earn a total of 46.00 from holding TAS Offshore Bhd or generate 242.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MClean Technologies Bhd vs. TAS Offshore Bhd
Performance |
| Timeline |
| MClean Technologies Bhd |
| TAS Offshore Bhd |
MClean Technologies and TAS Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MClean Technologies and TAS Offshore
The main advantage of trading using opposite MClean Technologies and TAS Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MClean Technologies position performs unexpectedly, TAS Offshore 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 TAS Offshore will offset losses from the drop in TAS Offshore's long position.| MClean Technologies vs. Digistar Bhd | MClean Technologies vs. Minetech Resources Bhd | MClean Technologies vs. Swift Haulage Bhd | MClean Technologies vs. Bina Darulaman Bhd |
| TAS Offshore vs. Malaysia Steel Works | TAS Offshore vs. CPE Technology Berhad | TAS Offshore vs. Awanbiru Technology Bhd | TAS Offshore vs. Public Packages Holdings |
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 Stocks Directory module to find actively traded stocks across global markets.
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