Correlation Between HeiTech Padu and Swift Haulage
Can any of the company-specific risk be diversified away by investing in both HeiTech Padu 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 HeiTech Padu and Swift Haulage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HeiTech Padu Bhd and Swift Haulage Bhd, you can compare the effects of market volatilities on HeiTech Padu 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 HeiTech Padu with a short position of Swift Haulage. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeiTech Padu and Swift Haulage.
Diversification Opportunities for HeiTech Padu and Swift Haulage
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between HeiTech and Swift is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding HeiTech Padu 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 HeiTech Padu 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 HeiTech Padu 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 HeiTech Padu i.e., HeiTech Padu and Swift Haulage go up and down completely randomly.
Pair Corralation between HeiTech Padu and Swift Haulage
Assuming the 90 days trading horizon HeiTech Padu Bhd is expected to generate 2.99 times more return on investment than Swift Haulage. However, HeiTech Padu is 2.99 times more volatile than Swift Haulage Bhd. It trades about 0.12 of its potential returns per unit of risk. Swift Haulage Bhd is currently generating about -0.02 per unit of risk. If you would invest 86.00 in HeiTech Padu Bhd on September 2, 2024 and sell it today you would earn a total of 235.00 from holding HeiTech Padu Bhd or generate 273.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeiTech Padu Bhd vs. Swift Haulage Bhd
Performance |
| Timeline |
| HeiTech Padu Bhd |
| Swift Haulage Bhd |
HeiTech Padu and Swift Haulage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeiTech Padu and Swift Haulage
The main advantage of trading using opposite HeiTech Padu and Swift Haulage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeiTech Padu 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.| HeiTech Padu vs. YTL Hospitality REIT | HeiTech Padu vs. YX Precious Metals | HeiTech Padu vs. DC HEALTHCARE HOLDINGS | HeiTech Padu vs. Malayan Banking 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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