Correlation Between TAS Offshore and EA Technique
Can any of the company-specific risk be diversified away by investing in both TAS Offshore and EA Technique 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 EA Technique 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 EA Technique M, you can compare the effects of market volatilities on TAS Offshore and EA Technique 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 EA Technique. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAS Offshore and EA Technique.
Diversification Opportunities for TAS Offshore and EA Technique
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between TAS and 5259 is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding TAS Offshore Bhd and EA Technique M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Technique M 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 EA Technique. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Technique M has no effect on the direction of TAS Offshore i.e., TAS Offshore and EA Technique go up and down completely randomly.
Pair Corralation between TAS Offshore and EA Technique
Assuming the 90 days trading horizon TAS Offshore Bhd is expected to under-perform the EA Technique. In addition to that, TAS Offshore is 2.2 times more volatile than EA Technique M. It trades about -0.2 of its total potential returns per unit of risk. EA Technique M is currently generating about 0.0 per unit of volatility. If you would invest 30.00 in EA Technique M on August 30, 2024 and sell it today you would earn a total of 0.00 from holding EA Technique M or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
TAS Offshore Bhd vs. EA Technique M
Performance |
| Timeline |
| TAS Offshore Bhd |
| EA Technique M |
TAS Offshore and EA Technique Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAS Offshore and EA Technique
The main advantage of trading using opposite TAS Offshore and EA Technique positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAS Offshore position performs unexpectedly, EA Technique 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 EA Technique will offset losses from the drop in EA Technique's long position.| TAS Offshore vs. Press Metal Bhd | TAS Offshore vs. Eonmetall Group Bhd | TAS Offshore vs. Uchi Technologies Bhd | TAS Offshore vs. Sapura Industrial Bhd |
| EA Technique vs. Digistar Bhd | EA Technique vs. AirAsia X Bhd | EA Technique vs. Tambun Indah Land | EA Technique vs. Insas 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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