Correlation Between TAS Offshore and MI Technovation
Can any of the company-specific risk be diversified away by investing in both TAS Offshore and MI Technovation 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 MI Technovation 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 MI Technovation Bhd, you can compare the effects of market volatilities on TAS Offshore and MI Technovation 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 MI Technovation. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAS Offshore and MI Technovation.
Diversification Opportunities for TAS Offshore and MI Technovation
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between TAS and 5286 is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding TAS Offshore Bhd and MI Technovation Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MI Technovation 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 MI Technovation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MI Technovation Bhd has no effect on the direction of TAS Offshore i.e., TAS Offshore and MI Technovation go up and down completely randomly.
Pair Corralation between TAS Offshore and MI Technovation
Assuming the 90 days trading horizon TAS Offshore Bhd is expected to under-perform the MI Technovation. But the stock apears to be less risky and, when comparing its historical volatility, TAS Offshore Bhd is 1.33 times less risky than MI Technovation. The stock trades about -0.2 of its potential returns per unit of risk. The MI Technovation Bhd is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 189.00 in MI Technovation Bhd on August 30, 2024 and sell it today you would earn a total of 20.00 from holding MI Technovation Bhd or generate 10.58% 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. MI Technovation Bhd
Performance |
| Timeline |
| TAS Offshore Bhd |
| MI Technovation Bhd |
TAS Offshore and MI Technovation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAS Offshore and MI Technovation
The main advantage of trading using opposite TAS Offshore and MI Technovation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAS Offshore position performs unexpectedly, MI Technovation 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 MI Technovation will offset losses from the drop in MI Technovation'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 |
| MI Technovation vs. Minetech Resources Bhd | MI Technovation vs. Sunzen Biotech Bhd | MI Technovation vs. Hengyuan Refining | MI Technovation vs. Impiana Hotels 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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