Correlation Between TAS Offshore and OpenSys M
Can any of the company-specific risk be diversified away by investing in both TAS Offshore and OpenSys M 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 TAS Offshore and OpenSys M into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TAS Offshore Bhd and OpenSys M Bhd, you can compare the effects of market volatilities on TAS Offshore and OpenSys M 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 TAS Offshore with a short position of OpenSys M. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAS Offshore and OpenSys M.
Diversification Opportunities for TAS Offshore and OpenSys M
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TAS and OpenSys is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding TAS Offshore Bhd and OpenSys M Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OpenSys M Bhd and TAS Offshore 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 TAS Offshore Bhd are associated (or correlated) with OpenSys M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OpenSys M Bhd has no effect on the direction of TAS Offshore i.e., TAS Offshore and OpenSys M go up and down completely randomly.
Pair Corralation between TAS Offshore and OpenSys M
Assuming the 90 days trading horizon TAS Offshore Bhd is expected to under-perform the OpenSys M. But the stock apears to be less risky and, when comparing its historical volatility, TAS Offshore Bhd is 1.01 times less risky than OpenSys M. The stock trades about -0.04 of its potential returns per unit of risk. The OpenSys M Bhd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 35.00 in OpenSys M Bhd on October 23, 2024 and sell it today you would earn a total of 0.00 from holding OpenSys M Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.0% |
| Values | Daily Returns |
TAS Offshore Bhd vs. OpenSys M Bhd
Performance |
| Timeline |
| TAS Offshore Bhd |
| OpenSys M Bhd |
TAS Offshore and OpenSys M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAS Offshore and OpenSys M
The main advantage of trading using opposite TAS Offshore and OpenSys M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAS Offshore position performs unexpectedly, OpenSys M 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 OpenSys M will offset losses from the drop in OpenSys M's long position.| TAS Offshore vs. K One Technology Bhd | TAS Offshore vs. Petronas Chemicals Group | TAS Offshore vs. Sports Toto Berhad | TAS Offshore vs. SSF Home Group |
| OpenSys M vs. ES Ceramics Technology | OpenSys M vs. Minetech Resources Bhd | OpenSys M vs. Dufu Tech Corp | OpenSys M vs. Tex Cycle Technology |
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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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