Correlation Between Swift Haulage and Digistar Bhd
Can any of the company-specific risk be diversified away by investing in both Swift Haulage and Digistar Bhd 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 Swift Haulage and Digistar Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swift Haulage Bhd and Digistar Bhd, you can compare the effects of market volatilities on Swift Haulage and Digistar Bhd 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 Swift Haulage with a short position of Digistar Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Haulage and Digistar Bhd.
Diversification Opportunities for Swift Haulage and Digistar Bhd
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Swift and Digistar is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Swift Haulage Bhd and Digistar Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Digistar Bhd and Swift Haulage 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 Swift Haulage Bhd are associated (or correlated) with Digistar Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Digistar Bhd has no effect on the direction of Swift Haulage i.e., Swift Haulage and Digistar Bhd go up and down completely randomly.
Pair Corralation between Swift Haulage and Digistar Bhd
Assuming the 90 days trading horizon Swift Haulage is expected to generate 2.85 times less return on investment than Digistar Bhd. But when comparing it to its historical volatility, Swift Haulage Bhd is 2.9 times less risky than Digistar Bhd. It trades about 0.01 of its potential returns per unit of risk. Digistar Bhd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 9.00 in Digistar Bhd on August 27, 2024 and sell it today you would lose (3.50) from holding Digistar Bhd or give up 38.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swift Haulage Bhd vs. Digistar Bhd
Performance |
| Timeline |
| Swift Haulage Bhd |
| Digistar Bhd |
Swift Haulage and Digistar Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swift Haulage and Digistar Bhd
The main advantage of trading using opposite Swift Haulage and Digistar Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swift Haulage position performs unexpectedly, Digistar Bhd 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 Digistar Bhd will offset losses from the drop in Digistar Bhd's long position.| Swift Haulage vs. Malayan Banking Bhd | Swift Haulage vs. Public Bank Bhd | Swift Haulage vs. Petronas Chemicals Group | Swift Haulage vs. Tenaga Nasional Bhd |
| Digistar Bhd vs. Petronas Chemicals Group | Digistar Bhd vs. Duopharma Biotech Bhd | Digistar Bhd vs. Magni Tech Industries | Digistar Bhd vs. Apollo Food Holdings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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