Correlation Between Swift Haulage and Hartalega Holdings
Can any of the company-specific risk be diversified away by investing in both Swift Haulage and Hartalega 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 Hartalega 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 Hartalega Holdings Bhd, you can compare the effects of market volatilities on Swift Haulage and Hartalega 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 Hartalega Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Haulage and Hartalega Holdings.
Diversification Opportunities for Swift Haulage and Hartalega Holdings
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Swift and Hartalega is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Swift Haulage Bhd and Hartalega Holdings Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hartalega 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 Hartalega Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hartalega Holdings Bhd has no effect on the direction of Swift Haulage i.e., Swift Haulage and Hartalega Holdings go up and down completely randomly.
Pair Corralation between Swift Haulage and Hartalega Holdings
Assuming the 90 days trading horizon Swift Haulage Bhd is expected to under-perform the Hartalega Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Swift Haulage Bhd is 2.2 times less risky than Hartalega Holdings. The stock trades about -0.09 of its potential returns per unit of risk. The Hartalega Holdings Bhd is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 317.00 in Hartalega Holdings Bhd on September 2, 2024 and sell it today you would earn a total of 35.00 from holding Hartalega Holdings Bhd or generate 11.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swift Haulage Bhd vs. Hartalega Holdings Bhd
Performance |
| Timeline |
| Swift Haulage Bhd |
| Hartalega Holdings Bhd |
Swift Haulage and Hartalega Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swift Haulage and Hartalega Holdings
The main advantage of trading using opposite Swift Haulage and Hartalega Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swift Haulage position performs unexpectedly, Hartalega 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 Hartalega Holdings will offset losses from the drop in Hartalega 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 |
| Hartalega Holdings vs. Kossan Rubber Industries | Hartalega Holdings vs. Digistar Bhd | Hartalega Holdings vs. Minetech Resources Bhd | Hartalega Holdings 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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