Correlation Between Swift Haulage and Sports Toto
Can any of the company-specific risk be diversified away by investing in both Swift Haulage and Sports Toto 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 Sports Toto 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 Sports Toto Berhad, you can compare the effects of market volatilities on Swift Haulage and Sports Toto 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 Sports Toto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Haulage and Sports Toto.
Diversification Opportunities for Swift Haulage and Sports Toto
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Swift and Sports is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Swift Haulage Bhd and Sports Toto Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sports Toto Berhad 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 Sports Toto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sports Toto Berhad has no effect on the direction of Swift Haulage i.e., Swift Haulage and Sports Toto go up and down completely randomly.
Pair Corralation between Swift Haulage and Sports Toto
Assuming the 90 days trading horizon Swift Haulage is expected to generate 1.24 times less return on investment than Sports Toto. In addition to that, Swift Haulage is 1.36 times more volatile than Sports Toto Berhad. It trades about 0.0 of its total potential returns per unit of risk. Sports Toto Berhad is currently generating about 0.01 per unit of volatility. If you would invest 144.00 in Sports Toto Berhad on September 2, 2024 and sell it today you would earn a total of 1.00 from holding Sports Toto Berhad or generate 0.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swift Haulage Bhd vs. Sports Toto Berhad
Performance |
| Timeline |
| Swift Haulage Bhd |
| Sports Toto Berhad |
Swift Haulage and Sports Toto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swift Haulage and Sports Toto
The main advantage of trading using opposite Swift Haulage and Sports Toto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swift Haulage position performs unexpectedly, Sports Toto 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 Sports Toto will offset losses from the drop in Sports Toto'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 |
| Sports Toto vs. Digistar Bhd | Sports Toto vs. Minetech Resources Bhd | Sports Toto vs. Swift Haulage Bhd | Sports Toto 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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