Correlation Between Swift Haulage and MClean Technologies
Can any of the company-specific risk be diversified away by investing in both Swift Haulage and MClean Technologies 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 MClean Technologies 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 MClean Technologies Bhd, you can compare the effects of market volatilities on Swift Haulage and MClean Technologies 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 MClean Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Haulage and MClean Technologies.
Diversification Opportunities for Swift Haulage and MClean Technologies
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Swift and MClean is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Swift Haulage Bhd and MClean Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MClean Technologies 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 MClean Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MClean Technologies Bhd has no effect on the direction of Swift Haulage i.e., Swift Haulage and MClean Technologies go up and down completely randomly.
Pair Corralation between Swift Haulage and MClean Technologies
Assuming the 90 days trading horizon Swift Haulage Bhd is expected to under-perform the MClean Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Swift Haulage Bhd is 1.82 times less risky than MClean Technologies. The stock trades about -0.05 of its potential returns per unit of risk. The MClean Technologies Bhd is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 26.00 in MClean Technologies Bhd on January 25, 2025 and sell it today you would earn a total of 0.00 from holding MClean Technologies Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swift Haulage Bhd vs. MClean Technologies Bhd
Performance |
| Timeline |
| Swift Haulage Bhd |
| MClean Technologies Bhd |
Swift Haulage and MClean Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swift Haulage and MClean Technologies
The main advantage of trading using opposite Swift Haulage and MClean Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swift Haulage position performs unexpectedly, MClean Technologies 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 MClean Technologies will offset losses from the drop in MClean Technologies' long position.| Swift Haulage vs. Binasat Communications Bhd | Swift Haulage vs. Choo Bee Metal | Swift Haulage vs. Diversified Gateway Solutions | Swift Haulage vs. Kossan Rubber Industries |
| MClean Technologies vs. Computer Forms Bhd | MClean Technologies vs. Tex Cycle Technology | MClean Technologies vs. Brite Tech 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |