Correlation Between TAS Offshore and MClean Technologies
Can any of the company-specific risk be diversified away by investing in both TAS Offshore and MClean Technologies 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 MClean Technologies 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 MClean Technologies Bhd, you can compare the effects of market volatilities on TAS Offshore and MClean Technologies 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 MClean Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAS Offshore and MClean Technologies.
Diversification Opportunities for TAS Offshore and MClean Technologies
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between TAS and MClean is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding TAS Offshore Bhd and MClean Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MClean Technologies 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 MClean Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MClean Technologies Bhd has no effect on the direction of TAS Offshore i.e., TAS Offshore and MClean Technologies go up and down completely randomly.
Pair Corralation between TAS Offshore and MClean Technologies
Assuming the 90 days trading horizon TAS Offshore Bhd is expected to generate 0.63 times more return on investment than MClean Technologies. However, TAS Offshore Bhd is 1.58 times less risky than MClean Technologies. It trades about 0.1 of its potential returns per unit of risk. MClean Technologies Bhd is currently generating about 0.06 per unit of risk. If you would invest 19.00 in TAS Offshore Bhd on September 2, 2024 and sell it today you would earn a total of 46.00 from holding TAS Offshore Bhd or generate 242.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TAS Offshore Bhd vs. MClean Technologies Bhd
Performance |
| Timeline |
| TAS Offshore Bhd |
| MClean Technologies Bhd |
TAS Offshore and MClean Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAS Offshore and MClean Technologies
The main advantage of trading using opposite TAS Offshore and MClean Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAS Offshore position performs unexpectedly, MClean Technologies 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 MClean Technologies will offset losses from the drop in MClean Technologies' long position.| TAS Offshore vs. Malaysia Steel Works | TAS Offshore vs. CPE Technology Berhad | TAS Offshore vs. Awanbiru Technology Bhd | TAS Offshore vs. Public Packages Holdings |
| MClean Technologies vs. Digistar Bhd | MClean Technologies vs. Minetech Resources Bhd | MClean Technologies vs. Swift Haulage Bhd | MClean Technologies vs. Bina Darulaman 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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