Correlation Between Swift Haulage and Impiana Hotels
Can any of the company-specific risk be diversified away by investing in both Swift Haulage and Impiana Hotels 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 Impiana Hotels 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 Impiana Hotels Bhd, you can compare the effects of market volatilities on Swift Haulage and Impiana Hotels 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 Impiana Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Haulage and Impiana Hotels.
Diversification Opportunities for Swift Haulage and Impiana Hotels
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Swift and Impiana is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Swift Haulage Bhd and Impiana Hotels Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Impiana Hotels 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 Impiana Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Impiana Hotels Bhd has no effect on the direction of Swift Haulage i.e., Swift Haulage and Impiana Hotels go up and down completely randomly.
Pair Corralation between Swift Haulage and Impiana Hotels
Assuming the 90 days trading horizon Swift Haulage Bhd is expected to under-perform the Impiana Hotels. But the stock apears to be less risky and, when comparing its historical volatility, Swift Haulage Bhd is 2.12 times less risky than Impiana Hotels. The stock trades about -0.05 of its potential returns per unit of risk. The Impiana Hotels Bhd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 22.00 in Impiana Hotels Bhd on August 27, 2024 and sell it today you would lose (1.00) from holding Impiana Hotels Bhd or give up 4.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Swift Haulage Bhd vs. Impiana Hotels Bhd
Performance |
| Timeline |
| Swift Haulage Bhd |
| Impiana Hotels Bhd |
Swift Haulage and Impiana Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swift Haulage and Impiana Hotels
The main advantage of trading using opposite Swift Haulage and Impiana Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swift Haulage position performs unexpectedly, Impiana Hotels 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 Impiana Hotels will offset losses from the drop in Impiana Hotels' 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 |
| Impiana Hotels vs. Digistar Bhd | Impiana Hotels vs. Minetech Resources Bhd | Impiana Hotels vs. OpenSys M Bhd | Impiana Hotels vs. Insas 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |