Correlation Between TAS Offshore and CIMB Group
Can any of the company-specific risk be diversified away by investing in both TAS Offshore and CIMB Group 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 CIMB Group 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 CIMB Group Holdings, you can compare the effects of market volatilities on TAS Offshore and CIMB Group 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 CIMB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAS Offshore and CIMB Group.
Diversification Opportunities for TAS Offshore and CIMB Group
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between TAS and CIMB is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding TAS Offshore Bhd and CIMB Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMB Group Holdings 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 CIMB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMB Group Holdings has no effect on the direction of TAS Offshore i.e., TAS Offshore and CIMB Group go up and down completely randomly.
Pair Corralation between TAS Offshore and CIMB Group
Assuming the 90 days trading horizon TAS Offshore Bhd is expected to generate 4.26 times more return on investment than CIMB Group. However, TAS Offshore is 4.26 times more volatile than CIMB Group Holdings. It trades about 0.08 of its potential returns per unit of risk. CIMB Group Holdings is currently generating about 0.1 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TAS Offshore Bhd vs. CIMB Group Holdings
Performance |
| Timeline |
| TAS Offshore Bhd |
| CIMB Group Holdings |
TAS Offshore and CIMB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAS Offshore and CIMB Group
The main advantage of trading using opposite TAS Offshore and CIMB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAS Offshore position performs unexpectedly, CIMB Group 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 CIMB Group will offset losses from the drop in CIMB Group's 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 |
| CIMB Group vs. Malayan Banking Bhd | CIMB Group vs. Public Bank Bhd | CIMB Group vs. Petronas Chemicals Group | CIMB Group 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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