Correlation Between SFP Tech and Swift Haulage
Can any of the company-specific risk be diversified away by investing in both SFP Tech 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 SFP Tech and Swift Haulage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SFP Tech Holdings and Swift Haulage Bhd, you can compare the effects of market volatilities on SFP Tech 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 SFP Tech with a short position of Swift Haulage. Check out your portfolio center. Please also check ongoing floating volatility patterns of SFP Tech and Swift Haulage.
Diversification Opportunities for SFP Tech and Swift Haulage
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SFP and Swift is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding SFP Tech Holdings 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 SFP Tech 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 SFP Tech Holdings 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 SFP Tech i.e., SFP Tech and Swift Haulage go up and down completely randomly.
Pair Corralation between SFP Tech and Swift Haulage
Assuming the 90 days trading horizon SFP Tech Holdings is expected to generate 1.19 times more return on investment than Swift Haulage. However, SFP Tech is 1.19 times more volatile than Swift Haulage Bhd. It trades about 0.25 of its potential returns per unit of risk. Swift Haulage Bhd is currently generating about -0.13 per unit of risk. If you would invest 61.00 in SFP Tech Holdings on August 27, 2024 and sell it today you would earn a total of 8.00 from holding SFP Tech Holdings or generate 13.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SFP Tech Holdings vs. Swift Haulage Bhd
Performance |
| Timeline |
| SFP Tech Holdings |
| Swift Haulage Bhd |
SFP Tech and Swift Haulage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SFP Tech and Swift Haulage
The main advantage of trading using opposite SFP Tech and Swift Haulage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SFP Tech 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.| SFP Tech vs. Malayan Banking Bhd | SFP Tech vs. Public Bank Bhd | SFP Tech vs. Petronas Chemicals Group | SFP Tech vs. Tenaga Nasional Bhd |
| Swift Haulage vs. Malayan Banking Bhd | Swift Haulage vs. Public Bank Bhd | Swift Haulage vs. Petronas Chemicals Group | Swift Haulage 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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