Correlation Between MI Technovation and TAS Offshore
Can any of the company-specific risk be diversified away by investing in both MI Technovation and TAS Offshore 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 MI Technovation and TAS Offshore into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MI Technovation Bhd and TAS Offshore Bhd, you can compare the effects of market volatilities on MI Technovation and TAS Offshore 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 MI Technovation with a short position of TAS Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of MI Technovation and TAS Offshore.
Diversification Opportunities for MI Technovation and TAS Offshore
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 5286 and TAS is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding MI Technovation Bhd and TAS Offshore Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAS Offshore Bhd and MI Technovation 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 MI Technovation Bhd are associated (or correlated) with TAS Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAS Offshore Bhd has no effect on the direction of MI Technovation i.e., MI Technovation and TAS Offshore go up and down completely randomly.
Pair Corralation between MI Technovation and TAS Offshore
Assuming the 90 days trading horizon MI Technovation Bhd is expected to under-perform the TAS Offshore. In addition to that, MI Technovation is 1.14 times more volatile than TAS Offshore Bhd. It trades about -0.16 of its total potential returns per unit of risk. TAS Offshore Bhd is currently generating about -0.05 per unit of volatility. If you would invest 65.00 in TAS Offshore Bhd on January 18, 2025 and sell it today you would lose (6.00) from holding TAS Offshore Bhd or give up 9.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MI Technovation Bhd vs. TAS Offshore Bhd
Performance |
| Timeline |
| MI Technovation Bhd |
| TAS Offshore Bhd |
MI Technovation and TAS Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MI Technovation and TAS Offshore
The main advantage of trading using opposite MI Technovation and TAS Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MI Technovation position performs unexpectedly, TAS Offshore 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 TAS Offshore will offset losses from the drop in TAS Offshore's long position.| MI Technovation vs. SSF Home Group | MI Technovation vs. Senheng New Retail | MI Technovation vs. Cloudpoint Technology Berhad | MI Technovation vs. JF Technology BHD |
| TAS Offshore vs. Shangri La Hotels | TAS Offshore vs. Media Prima Bhd | TAS Offshore vs. Alliance Financial Group | TAS Offshore vs. RHB Bank 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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