Correlation Between TAS Offshore and Public Bank
Can any of the company-specific risk be diversified away by investing in both TAS Offshore and Public Bank 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 Public Bank 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 Public Bank Bhd, you can compare the effects of market volatilities on TAS Offshore and Public Bank 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 Public Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAS Offshore and Public Bank.
Diversification Opportunities for TAS Offshore and Public Bank
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between TAS and Public is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding TAS Offshore Bhd and Public Bank Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Public Bank 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 Public Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Public Bank Bhd has no effect on the direction of TAS Offshore i.e., TAS Offshore and Public Bank go up and down completely randomly.
Pair Corralation between TAS Offshore and Public Bank
Assuming the 90 days trading horizon TAS Offshore Bhd is expected to generate 4.69 times more return on investment than Public Bank. However, TAS Offshore is 4.69 times more volatile than Public Bank Bhd. It trades about 0.08 of its potential returns per unit of risk. Public Bank Bhd is currently generating about 0.04 per unit of risk. If you would invest 19.00 in TAS Offshore Bhd on September 14, 2024 and sell it today you would earn a total of 47.00 from holding TAS Offshore Bhd or generate 247.37% 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. Public Bank Bhd
Performance |
| Timeline |
| TAS Offshore Bhd |
| Public Bank Bhd |
TAS Offshore and Public Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAS Offshore and Public Bank
The main advantage of trading using opposite TAS Offshore and Public Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAS Offshore position performs unexpectedly, Public Bank 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 Public Bank will offset losses from the drop in Public Bank's long position.| TAS Offshore vs. PIE Industrial Bhd | TAS Offshore vs. Kobay Tech Bhd | TAS Offshore vs. JF Technology BHD | TAS Offshore vs. CB Industrial Product |
| Public Bank vs. Silver Ridge Holdings | Public Bank vs. Sports Toto Berhad | Public Bank vs. Apollo Food Holdings | Public Bank vs. TAS Offshore 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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