Correlation Between Keck Seng and Swift Haulage
Can any of the company-specific risk be diversified away by investing in both Keck Seng 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 Keck Seng and Swift Haulage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Keck Seng Malaysia and Swift Haulage Bhd, you can compare the effects of market volatilities on Keck Seng 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 Keck Seng with a short position of Swift Haulage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keck Seng and Swift Haulage.
Diversification Opportunities for Keck Seng and Swift Haulage
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Keck and Swift is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Keck Seng Malaysia 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 Keck Seng 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 Keck Seng Malaysia 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 Keck Seng i.e., Keck Seng and Swift Haulage go up and down completely randomly.
Pair Corralation between Keck Seng and Swift Haulage
Assuming the 90 days trading horizon Keck Seng Malaysia is expected to generate 0.6 times more return on investment than Swift Haulage. However, Keck Seng Malaysia is 1.67 times less risky than Swift Haulage. It trades about 0.09 of its potential returns per unit of risk. Swift Haulage Bhd is currently generating about 0.0 per unit of risk. If you would invest 426.00 in Keck Seng Malaysia on September 4, 2024 and sell it today you would earn a total of 145.00 from holding Keck Seng Malaysia or generate 34.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.65% |
| Values | Daily Returns |
Keck Seng Malaysia vs. Swift Haulage Bhd
Performance |
| Timeline |
| Keck Seng Malaysia |
| Swift Haulage Bhd |
Keck Seng and Swift Haulage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keck Seng and Swift Haulage
The main advantage of trading using opposite Keck Seng and Swift Haulage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keck Seng 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.| Keck Seng vs. Uchi Technologies Bhd | Keck Seng vs. Press Metal Bhd | Keck Seng vs. Alliance Financial Group | Keck Seng vs. Choo Bee Metal |
| 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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