Correlation Between TAS Offshore and Telekom Malaysia
Can any of the company-specific risk be diversified away by investing in both TAS Offshore and Telekom Malaysia 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 Telekom Malaysia 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 Telekom Malaysia Bhd, you can compare the effects of market volatilities on TAS Offshore and Telekom Malaysia 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 Telekom Malaysia. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAS Offshore and Telekom Malaysia.
Diversification Opportunities for TAS Offshore and Telekom Malaysia
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TAS and Telekom is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding TAS Offshore Bhd and Telekom Malaysia Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Telekom Malaysia 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 Telekom Malaysia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Telekom Malaysia Bhd has no effect on the direction of TAS Offshore i.e., TAS Offshore and Telekom Malaysia go up and down completely randomly.
Pair Corralation between TAS Offshore and Telekom Malaysia
Assuming the 90 days trading horizon TAS Offshore Bhd is expected to generate 3.66 times more return on investment than Telekom Malaysia. However, TAS Offshore is 3.66 times more volatile than Telekom Malaysia Bhd. It trades about 0.08 of its potential returns per unit of risk. Telekom Malaysia Bhd is currently generating about 0.06 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 Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TAS Offshore Bhd vs. Telekom Malaysia Bhd
Performance |
| Timeline |
| TAS Offshore Bhd |
| Telekom Malaysia Bhd |
TAS Offshore and Telekom Malaysia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAS Offshore and Telekom Malaysia
The main advantage of trading using opposite TAS Offshore and Telekom Malaysia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAS Offshore position performs unexpectedly, Telekom Malaysia 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 Telekom Malaysia will offset losses from the drop in Telekom Malaysia'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 |
| Telekom Malaysia vs. Cosmos Technology International | Telekom Malaysia vs. Nova Wellness Group | Telekom Malaysia vs. Cloudpoint Technology Berhad | Telekom Malaysia vs. DC HEALTHCARE HOLDINGS |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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