Correlation Between Swift Haulage and Tenaga Nasional
Can any of the company-specific risk be diversified away by investing in both Swift Haulage and Tenaga Nasional 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 Tenaga Nasional 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 Tenaga Nasional Bhd, you can compare the effects of market volatilities on Swift Haulage and Tenaga Nasional 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 Tenaga Nasional. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Haulage and Tenaga Nasional.
Diversification Opportunities for Swift Haulage and Tenaga Nasional
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Swift and Tenaga is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Swift Haulage Bhd and Tenaga Nasional Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tenaga Nasional 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 Tenaga Nasional. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tenaga Nasional Bhd has no effect on the direction of Swift Haulage i.e., Swift Haulage and Tenaga Nasional go up and down completely randomly.
Pair Corralation between Swift Haulage and Tenaga Nasional
Assuming the 90 days trading horizon Swift Haulage Bhd is expected to under-perform the Tenaga Nasional. In addition to that, Swift Haulage is 1.6 times more volatile than Tenaga Nasional Bhd. It trades about -0.1 of its total potential returns per unit of risk. Tenaga Nasional Bhd is currently generating about -0.06 per unit of volatility. If you would invest 1,444 in Tenaga Nasional Bhd on August 30, 2024 and sell it today you would lose (46.00) from holding Tenaga Nasional Bhd or give up 3.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swift Haulage Bhd vs. Tenaga Nasional Bhd
Performance |
| Timeline |
| Swift Haulage Bhd |
| Tenaga Nasional Bhd |
Swift Haulage and Tenaga Nasional Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swift Haulage and Tenaga Nasional
The main advantage of trading using opposite Swift Haulage and Tenaga Nasional positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swift Haulage position performs unexpectedly, Tenaga Nasional 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 Tenaga Nasional will offset losses from the drop in Tenaga Nasional's long position.| Swift Haulage vs. Tex Cycle Technology | Swift Haulage vs. Cloudpoint Technology Berhad | Swift Haulage vs. Lotte Chemical Titan | Swift Haulage vs. Apollo Food Holdings |
| Tenaga Nasional vs. EA Technique M | Tenaga Nasional vs. Minetech Resources Bhd | Tenaga Nasional vs. MClean Technologies Bhd | Tenaga Nasional vs. SFP Tech Holdings |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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