Correlation Between Swift Haulage and Binasat Communications
Can any of the company-specific risk be diversified away by investing in both Swift Haulage and Binasat Communications 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 Binasat Communications 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 Binasat Communications Bhd, you can compare the effects of market volatilities on Swift Haulage and Binasat Communications 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 Binasat Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Haulage and Binasat Communications.
Diversification Opportunities for Swift Haulage and Binasat Communications
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Swift and Binasat is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Swift Haulage Bhd and Binasat Communications Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Binasat Communications 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 Binasat Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Binasat Communications has no effect on the direction of Swift Haulage i.e., Swift Haulage and Binasat Communications go up and down completely randomly.
Pair Corralation between Swift Haulage and Binasat Communications
Assuming the 90 days trading horizon Swift Haulage Bhd is expected to under-perform the Binasat Communications. But the stock apears to be less risky and, when comparing its historical volatility, Swift Haulage Bhd is 1.7 times less risky than Binasat Communications. The stock trades about -0.09 of its potential returns per unit of risk. The Binasat Communications Bhd is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 25.00 in Binasat Communications Bhd on August 31, 2024 and sell it today you would lose (4.00) from holding Binasat Communications Bhd or give up 16.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swift Haulage Bhd vs. Binasat Communications Bhd
Performance |
| Timeline |
| Swift Haulage Bhd |
| Binasat Communications |
Swift Haulage and Binasat Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swift Haulage and Binasat Communications
The main advantage of trading using opposite Swift Haulage and Binasat Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swift Haulage position performs unexpectedly, Binasat Communications 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 Binasat Communications will offset losses from the drop in Binasat Communications' long position.| Swift Haulage vs. Choo Bee Metal | Swift Haulage vs. Resintech Bhd | Swift Haulage vs. Binasat Communications Bhd | Swift Haulage vs. Magni Tech Industries |
| Binasat Communications vs. Digistar Bhd | Binasat Communications vs. Minetech Resources Bhd | Binasat Communications vs. Swift Haulage Bhd | Binasat Communications vs. Bina Darulaman 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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