Correlation Between TAS Offshore and Press Metal
Can any of the company-specific risk be diversified away by investing in both TAS Offshore and Press Metal 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 Press Metal 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 Press Metal Bhd, you can compare the effects of market volatilities on TAS Offshore and Press Metal 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 Press Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAS Offshore and Press Metal.
Diversification Opportunities for TAS Offshore and Press Metal
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TAS and Press is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding TAS Offshore Bhd and Press Metal Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Press Metal 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 Press Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Press Metal Bhd has no effect on the direction of TAS Offshore i.e., TAS Offshore and Press Metal go up and down completely randomly.
Pair Corralation between TAS Offshore and Press Metal
Assuming the 90 days trading horizon TAS Offshore Bhd is expected to under-perform the Press Metal. But the stock apears to be less risky and, when comparing its historical volatility, TAS Offshore Bhd is 1.04 times less risky than Press Metal. The stock trades about -0.2 of its potential returns per unit of risk. The Press Metal Bhd is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 473.00 in Press Metal Bhd on August 30, 2024 and sell it today you would lose (3.00) from holding Press Metal Bhd or give up 0.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TAS Offshore Bhd vs. Press Metal Bhd
Performance |
| Timeline |
| TAS Offshore Bhd |
| Press Metal Bhd |
TAS Offshore and Press Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TAS Offshore and Press Metal
The main advantage of trading using opposite TAS Offshore and Press Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAS Offshore position performs unexpectedly, Press Metal 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 Press Metal will offset losses from the drop in Press Metal'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 |
| Press Metal vs. Diversified Gateway Solutions | Press Metal vs. YX Precious Metals | Press Metal vs. K One Technology Bhd | Press Metal vs. Computer Forms 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |