Correlation Between Swift Haulage and Senheng New
Can any of the company-specific risk be diversified away by investing in both Swift Haulage and Senheng New 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 Senheng New 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 Senheng New Retail, you can compare the effects of market volatilities on Swift Haulage and Senheng New 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 Senheng New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Haulage and Senheng New.
Diversification Opportunities for Swift Haulage and Senheng New
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Swift and Senheng is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Swift Haulage Bhd and Senheng New Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senheng New Retail 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 Senheng New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senheng New Retail has no effect on the direction of Swift Haulage i.e., Swift Haulage and Senheng New go up and down completely randomly.
Pair Corralation between Swift Haulage and Senheng New
Assuming the 90 days trading horizon Swift Haulage Bhd is expected to under-perform the Senheng New. In addition to that, Swift Haulage is 1.37 times more volatile than Senheng New Retail. It trades about -0.13 of its total potential returns per unit of risk. Senheng New Retail is currently generating about 0.13 per unit of volatility. If you would invest 24.00 in Senheng New Retail on August 31, 2024 and sell it today you would earn a total of 1.00 from holding Senheng New Retail or generate 4.17% 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. Senheng New Retail
Performance |
| Timeline |
| Swift Haulage Bhd |
| Senheng New Retail |
Swift Haulage and Senheng New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swift Haulage and Senheng New
The main advantage of trading using opposite Swift Haulage and Senheng New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swift Haulage position performs unexpectedly, Senheng New 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 Senheng New will offset losses from the drop in Senheng New's 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 |
| Senheng New vs. Radiant Globaltech Bhd | Senheng New vs. Digistar Bhd | Senheng New vs. Minetech Resources Bhd | Senheng New 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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