Correlation Between Heineken Bhd and Swift Haulage
Can any of the company-specific risk be diversified away by investing in both Heineken Bhd 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 Heineken Bhd and Swift Haulage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heineken Bhd and Swift Haulage Bhd, you can compare the effects of market volatilities on Heineken Bhd 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 Heineken Bhd with a short position of Swift Haulage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heineken Bhd and Swift Haulage.
Diversification Opportunities for Heineken Bhd and Swift Haulage
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Heineken and Swift is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Heineken Bhd 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 Heineken Bhd 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 Heineken Bhd 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 Heineken Bhd i.e., Heineken Bhd and Swift Haulage go up and down completely randomly.
Pair Corralation between Heineken Bhd and Swift Haulage
Assuming the 90 days trading horizon Heineken Bhd is expected to under-perform the Swift Haulage. But the stock apears to be less risky and, when comparing its historical volatility, Heineken Bhd is 4.74 times less risky than Swift Haulage. The stock trades about -0.13 of its potential returns per unit of risk. The Swift Haulage Bhd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 45.00 in Swift Haulage Bhd on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Swift Haulage Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Heineken Bhd vs. Swift Haulage Bhd
Performance |
| Timeline |
| Heineken Bhd |
| Swift Haulage Bhd |
Heineken Bhd and Swift Haulage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heineken Bhd and Swift Haulage
The main advantage of trading using opposite Heineken Bhd and Swift Haulage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heineken Bhd 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.| Heineken Bhd vs. Carlsberg Brewery Malaysia | Heineken Bhd vs. Nexgram Holdings Bhd | Heineken Bhd vs. Techfast Holdings Bhd |
| Swift Haulage vs. Berjaya Food Bhd | Swift Haulage vs. Al Aqar Healthcare | Swift Haulage vs. BP Plastics Holding | Swift Haulage vs. Rubberex M |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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