Correlation Between TAS Offshore and Magni Tech
Can any of the company-specific risk be diversified away by investing in both TAS Offshore and Magni Tech 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 Magni Tech 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 Magni Tech Industries, you can compare the effects of market volatilities on TAS Offshore and Magni Tech 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 Magni Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAS Offshore and Magni Tech.
Diversification Opportunities for TAS Offshore and Magni Tech
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between TAS and Magni is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding TAS Offshore Bhd and Magni Tech Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magni Tech Industries 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 Magni Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magni Tech Industries has no effect on the direction of TAS Offshore i.e., TAS Offshore and Magni Tech go up and down completely randomly.
Pair Corralation between TAS Offshore and Magni Tech
Assuming the 90 days trading horizon TAS Offshore Bhd is expected to generate 2.71 times more return on investment than Magni Tech. However, TAS Offshore is 2.71 times more volatile than Magni Tech Industries. It trades about 0.09 of its potential returns per unit of risk. Magni Tech Industries is currently generating about 0.09 per unit of risk. If you would invest 21.00 in TAS Offshore Bhd on August 31, 2024 and sell it today you would earn a total of 43.00 from holding TAS Offshore Bhd or generate 204.76% 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. Magni Tech Industries
Performance |
| Timeline |
| TAS Offshore Bhd |
| Magni Tech Industries |
TAS Offshore and Magni Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAS Offshore and Magni Tech
The main advantage of trading using opposite TAS Offshore and Magni Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAS Offshore position performs unexpectedly, Magni Tech 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 Magni Tech will offset losses from the drop in Magni Tech's long position.| TAS Offshore vs. MyTech Group Bhd | TAS Offshore vs. PMB Technology Bhd | TAS Offshore vs. MI Technovation Bhd | TAS Offshore vs. Pantech Group Holdings |
| Magni Tech vs. ES Ceramics Technology | Magni Tech vs. TAS Offshore Bhd | Magni Tech vs. Icon Offshore Bhd | Magni Tech vs. Uchi Technologies 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 CEOs Directory module to screen CEOs from public companies around the world.
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