Correlation Between TAS Offshore and Sunway Construction
Can any of the company-specific risk be diversified away by investing in both TAS Offshore and Sunway Construction 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 Sunway Construction 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 Sunway Construction Group, you can compare the effects of market volatilities on TAS Offshore and Sunway Construction 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 Sunway Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAS Offshore and Sunway Construction.
Diversification Opportunities for TAS Offshore and Sunway Construction
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between TAS and Sunway is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding TAS Offshore Bhd and Sunway Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunway Construction 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 Sunway Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunway Construction has no effect on the direction of TAS Offshore i.e., TAS Offshore and Sunway Construction go up and down completely randomly.
Pair Corralation between TAS Offshore and Sunway Construction
Assuming the 90 days trading horizon TAS Offshore Bhd is expected to under-perform the Sunway Construction. But the stock apears to be less risky and, when comparing its historical volatility, TAS Offshore Bhd is 1.08 times less risky than Sunway Construction. The stock trades about -0.2 of its potential returns per unit of risk. The Sunway Construction Group is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 450.00 in Sunway Construction Group on August 30, 2024 and sell it today you would lose (8.00) from holding Sunway Construction Group or give up 1.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
TAS Offshore Bhd vs. Sunway Construction Group
Performance |
| Timeline |
| TAS Offshore Bhd |
| Sunway Construction |
TAS Offshore and Sunway Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAS Offshore and Sunway Construction
The main advantage of trading using opposite TAS Offshore and Sunway Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAS Offshore position performs unexpectedly, Sunway Construction 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 Sunway Construction will offset losses from the drop in Sunway Construction'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 |
| Sunway Construction vs. K One Technology Bhd | Sunway Construction vs. PMB Technology Bhd | Sunway Construction vs. Homeritz Bhd | Sunway Construction vs. Binasat Communications 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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