Correlation Between Swift Haulage and AMMB Holdings
Can any of the company-specific risk be diversified away by investing in both Swift Haulage and AMMB Holdings 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 AMMB Holdings 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 AMMB Holdings Bhd, you can compare the effects of market volatilities on Swift Haulage and AMMB Holdings 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 AMMB Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Haulage and AMMB Holdings.
Diversification Opportunities for Swift Haulage and AMMB Holdings
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Swift and AMMB is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Swift Haulage Bhd and AMMB Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMMB Holdings 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 AMMB Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMMB Holdings Bhd has no effect on the direction of Swift Haulage i.e., Swift Haulage and AMMB Holdings go up and down completely randomly.
Pair Corralation between Swift Haulage and AMMB Holdings
Assuming the 90 days trading horizon Swift Haulage Bhd is expected to under-perform the AMMB Holdings. In addition to that, Swift Haulage is 1.57 times more volatile than AMMB Holdings Bhd. It trades about -0.13 of its total potential returns per unit of risk. AMMB Holdings Bhd is currently generating about 0.08 per unit of volatility. If you would invest 515.00 in AMMB Holdings Bhd on August 27, 2024 and sell it today you would earn a total of 10.00 from holding AMMB Holdings Bhd or generate 1.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swift Haulage Bhd vs. AMMB Holdings Bhd
Performance |
| Timeline |
| Swift Haulage Bhd |
| AMMB Holdings Bhd |
Swift Haulage and AMMB Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swift Haulage and AMMB Holdings
The main advantage of trading using opposite Swift Haulage and AMMB Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swift Haulage position performs unexpectedly, AMMB Holdings 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 AMMB Holdings will offset losses from the drop in AMMB Holdings' 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 |
| AMMB Holdings vs. Digistar Bhd | AMMB Holdings vs. Minetech Resources Bhd | AMMB Holdings vs. OpenSys M Bhd | AMMB Holdings vs. Insas 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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