Correlation Between TAS Offshore and Bank Islam
Can any of the company-specific risk be diversified away by investing in both TAS Offshore and Bank Islam 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 Bank Islam 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 Bank Islam Malaysia, you can compare the effects of market volatilities on TAS Offshore and Bank Islam 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 Bank Islam. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAS Offshore and Bank Islam.
Diversification Opportunities for TAS Offshore and Bank Islam
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TAS and Bank is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding TAS Offshore Bhd and Bank Islam Malaysia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank Islam Malaysia 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 Bank Islam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank Islam Malaysia has no effect on the direction of TAS Offshore i.e., TAS Offshore and Bank Islam go up and down completely randomly.
Pair Corralation between TAS Offshore and Bank Islam
Assuming the 90 days trading horizon TAS Offshore Bhd is expected to generate 2.65 times more return on investment than Bank Islam. However, TAS Offshore is 2.65 times more volatile than Bank Islam Malaysia. It trades about 0.05 of its potential returns per unit of risk. Bank Islam Malaysia is currently generating about -0.02 per unit of risk. If you would invest 64.00 in TAS Offshore Bhd on November 7, 2024 and sell it today you would earn a total of 1.00 from holding TAS Offshore Bhd or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TAS Offshore Bhd vs. Bank Islam Malaysia
Performance |
| Timeline |
| TAS Offshore Bhd |
| Bank Islam Malaysia |
TAS Offshore and Bank Islam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAS Offshore and Bank Islam
The main advantage of trading using opposite TAS Offshore and Bank Islam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAS Offshore position performs unexpectedly, Bank Islam 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 Bank Islam will offset losses from the drop in Bank Islam'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 |
| Bank Islam vs. Berjaya Food Bhd | Bank Islam vs. Al Aqar Healthcare | Bank Islam vs. Computer Forms Bhd | Bank Islam vs. KPJ Healthcare 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |