Correlation Between Swift Haulage and Lyc Healthcare
Can any of the company-specific risk be diversified away by investing in both Swift Haulage and Lyc Healthcare 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 Lyc Healthcare 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 Lyc Healthcare Bhd, you can compare the effects of market volatilities on Swift Haulage and Lyc Healthcare 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 Lyc Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Haulage and Lyc Healthcare.
Diversification Opportunities for Swift Haulage and Lyc Healthcare
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Swift and Lyc is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Swift Haulage Bhd and Lyc Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyc Healthcare 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 Lyc Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyc Healthcare Bhd has no effect on the direction of Swift Haulage i.e., Swift Haulage and Lyc Healthcare go up and down completely randomly.
Pair Corralation between Swift Haulage and Lyc Healthcare
Assuming the 90 days trading horizon Swift Haulage Bhd is expected to under-perform the Lyc Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Swift Haulage Bhd is 2.61 times less risky than Lyc Healthcare. The stock trades about -0.13 of its potential returns per unit of risk. The Lyc Healthcare Bhd is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 9.00 in Lyc Healthcare Bhd on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Lyc Healthcare Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swift Haulage Bhd vs. Lyc Healthcare Bhd
Performance |
| Timeline |
| Swift Haulage Bhd |
| Lyc Healthcare Bhd |
Swift Haulage and Lyc Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swift Haulage and Lyc Healthcare
The main advantage of trading using opposite Swift Haulage and Lyc Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swift Haulage position performs unexpectedly, Lyc Healthcare 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 Lyc Healthcare will offset losses from the drop in Lyc Healthcare'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 |
| Lyc Healthcare vs. IHH Healthcare Bhd | Lyc Healthcare vs. Digistar Bhd | Lyc Healthcare vs. Minetech Resources Bhd | Lyc Healthcare vs. Swift Haulage 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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