Correlation Between TAS Offshore and Alliance Financial
Can any of the company-specific risk be diversified away by investing in both TAS Offshore and Alliance Financial 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 Alliance Financial 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 Alliance Financial Group, you can compare the effects of market volatilities on TAS Offshore and Alliance Financial 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 Alliance Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAS Offshore and Alliance Financial.
Diversification Opportunities for TAS Offshore and Alliance Financial
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between TAS and Alliance is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding TAS Offshore Bhd and Alliance Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alliance Financial 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 Alliance Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alliance Financial has no effect on the direction of TAS Offshore i.e., TAS Offshore and Alliance Financial go up and down completely randomly.
Pair Corralation between TAS Offshore and Alliance Financial
Assuming the 90 days trading horizon TAS Offshore Bhd is expected to generate 4.0 times more return on investment than Alliance Financial. However, TAS Offshore is 4.0 times more volatile than Alliance Financial Group. It trades about 0.08 of its potential returns per unit of risk. Alliance Financial Group is currently generating about 0.08 per unit of risk. If you would invest 18.00 in TAS Offshore Bhd on August 24, 2024 and sell it today you would earn a total of 46.00 from holding TAS Offshore Bhd or generate 255.56% 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. Alliance Financial Group
Performance |
| Timeline |
| TAS Offshore Bhd |
| Alliance Financial |
TAS Offshore and Alliance Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAS Offshore and Alliance Financial
The main advantage of trading using opposite TAS Offshore and Alliance Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAS Offshore position performs unexpectedly, Alliance Financial 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 Alliance Financial will offset losses from the drop in Alliance Financial's long position.| TAS Offshore vs. Greatech Technology Bhd | TAS Offshore vs. Uwc Bhd | TAS Offshore vs. Genetec Technology Bhd | TAS Offshore vs. PIE Industrial Bhd |
| Alliance Financial vs. Aeon Credit Service | Alliance Financial vs. Digistar Bhd | Alliance Financial vs. Minetech Resources Bhd | Alliance Financial vs. OpenSys M 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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