Correlation Between TAS Offshore and Senheng New
Can any of the company-specific risk be diversified away by investing in both TAS Offshore and Senheng New 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 Senheng New 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 Senheng New Retail, you can compare the effects of market volatilities on TAS Offshore and Senheng New 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 Senheng New. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAS Offshore and Senheng New.
Diversification Opportunities for TAS Offshore and Senheng New
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TAS and Senheng is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding TAS Offshore Bhd and Senheng New Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senheng New Retail 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 Senheng New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senheng New Retail has no effect on the direction of TAS Offshore i.e., TAS Offshore and Senheng New go up and down completely randomly.
Pair Corralation between TAS Offshore and Senheng New
Assuming the 90 days trading horizon TAS Offshore Bhd is expected to under-perform the Senheng New. In addition to that, TAS Offshore is 1.41 times more volatile than Senheng New Retail. It trades about -0.2 of its total potential returns per unit of risk. Senheng New Retail is currently generating about 0.13 per unit of volatility. If you would invest 24.00 in Senheng New Retail on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Senheng New Retail or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TAS Offshore Bhd vs. Senheng New Retail
Performance |
| Timeline |
| TAS Offshore Bhd |
| Senheng New Retail |
TAS Offshore and Senheng New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAS Offshore and Senheng New
The main advantage of trading using opposite TAS Offshore and Senheng New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAS Offshore position performs unexpectedly, Senheng New 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 Senheng New will offset losses from the drop in Senheng New's long position.| TAS Offshore vs. Malaysia Steel Works | TAS Offshore vs. CPE Technology Berhad | TAS Offshore vs. Awanbiru Technology Bhd | TAS Offshore vs. Public Packages Holdings |
| Senheng New vs. Digistar Bhd | Senheng New vs. Minetech Resources Bhd | Senheng New vs. Swift Haulage Bhd | Senheng New vs. Bina Darulaman 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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