Correlation Between Swift Haulage and Kumpulan Kitacon
Can any of the company-specific risk be diversified away by investing in both Swift Haulage and Kumpulan Kitacon 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 Kumpulan Kitacon 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 Kumpulan Kitacon Berhad, you can compare the effects of market volatilities on Swift Haulage and Kumpulan Kitacon 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 Kumpulan Kitacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Haulage and Kumpulan Kitacon.
Diversification Opportunities for Swift Haulage and Kumpulan Kitacon
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Swift and Kumpulan is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Swift Haulage Bhd and Kumpulan Kitacon Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kumpulan Kitacon 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 Kumpulan Kitacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kumpulan Kitacon Berhad has no effect on the direction of Swift Haulage i.e., Swift Haulage and Kumpulan Kitacon go up and down completely randomly.
Pair Corralation between Swift Haulage and Kumpulan Kitacon
Assuming the 90 days trading horizon Swift Haulage is expected to generate 3.28 times less return on investment than Kumpulan Kitacon. In addition to that, Swift Haulage is 1.21 times more volatile than Kumpulan Kitacon Berhad. It trades about 0.01 of its total potential returns per unit of risk. Kumpulan Kitacon Berhad is currently generating about 0.03 per unit of volatility. If you would invest 63.00 in Kumpulan Kitacon Berhad on August 27, 2024 and sell it today you would earn a total of 9.00 from holding Kumpulan Kitacon Berhad or generate 14.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.98% |
| Values | Daily Returns |
Swift Haulage Bhd vs. Kumpulan Kitacon Berhad
Performance |
| Timeline |
| Swift Haulage Bhd |
| Kumpulan Kitacon Berhad |
Swift Haulage and Kumpulan Kitacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swift Haulage and Kumpulan Kitacon
The main advantage of trading using opposite Swift Haulage and Kumpulan Kitacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swift Haulage position performs unexpectedly, Kumpulan Kitacon 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 Kumpulan Kitacon will offset losses from the drop in Kumpulan Kitacon'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 |
| Kumpulan Kitacon vs. Malayan Banking Bhd | Kumpulan Kitacon vs. Public Bank Bhd | Kumpulan Kitacon vs. Petronas Chemicals Group | Kumpulan Kitacon vs. Tenaga Nasional 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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