Correlation Between Swift Haulage and KPJ Healthcare
Can any of the company-specific risk be diversified away by investing in both Swift Haulage and KPJ Healthcare 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 KPJ Healthcare 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 KPJ Healthcare Bhd, you can compare the effects of market volatilities on Swift Haulage and KPJ Healthcare 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 KPJ Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Haulage and KPJ Healthcare.
Diversification Opportunities for Swift Haulage and KPJ Healthcare
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Swift and KPJ is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding Swift Haulage Bhd and KPJ Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KPJ Healthcare 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 KPJ Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KPJ Healthcare Bhd has no effect on the direction of Swift Haulage i.e., Swift Haulage and KPJ Healthcare go up and down completely randomly.
Pair Corralation between Swift Haulage and KPJ Healthcare
Assuming the 90 days trading horizon Swift Haulage is expected to generate 7.5 times less return on investment than KPJ Healthcare. In addition to that, Swift Haulage is 1.28 times more volatile than KPJ Healthcare Bhd. It trades about 0.01 of its total potential returns per unit of risk. KPJ Healthcare Bhd is currently generating about 0.14 per unit of volatility. If you would invest 98.00 in KPJ Healthcare Bhd on September 3, 2024 and sell it today you would earn a total of 146.00 from holding KPJ Healthcare Bhd or generate 148.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swift Haulage Bhd vs. KPJ Healthcare Bhd
Performance |
| Timeline |
| Swift Haulage Bhd |
| KPJ Healthcare Bhd |
Swift Haulage and KPJ Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swift Haulage and KPJ Healthcare
The main advantage of trading using opposite Swift Haulage and KPJ Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swift Haulage position performs unexpectedly, KPJ Healthcare 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 KPJ Healthcare will offset losses from the drop in KPJ Healthcare's long position.| Swift Haulage vs. Radiant Globaltech Bhd | Swift Haulage vs. EA Technique M | Swift Haulage vs. Kobay Tech Bhd | Swift Haulage vs. Resintech Bhd |
| KPJ Healthcare vs. K One Technology Bhd | KPJ Healthcare vs. JF Technology BHD | KPJ Healthcare vs. Ho Hup Construction | KPJ Healthcare vs. TAS Offshore 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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