Correlation Between Swift Haulage and Sapura Industrial
Can any of the company-specific risk be diversified away by investing in both Swift Haulage and Sapura Industrial 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 Sapura Industrial 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 Sapura Industrial Bhd, you can compare the effects of market volatilities on Swift Haulage and Sapura Industrial 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 Sapura Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swift Haulage and Sapura Industrial.
Diversification Opportunities for Swift Haulage and Sapura Industrial
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Swift and Sapura is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Swift Haulage Bhd and Sapura Industrial Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sapura Industrial 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 Sapura Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sapura Industrial Bhd has no effect on the direction of Swift Haulage i.e., Swift Haulage and Sapura Industrial go up and down completely randomly.
Pair Corralation between Swift Haulage and Sapura Industrial
Assuming the 90 days trading horizon Swift Haulage Bhd is expected to under-perform the Sapura Industrial. In addition to that, Swift Haulage is 1.43 times more volatile than Sapura Industrial Bhd. It trades about -0.13 of its total potential returns per unit of risk. Sapura Industrial Bhd is currently generating about 0.08 per unit of volatility. If you would invest 82.00 in Sapura Industrial Bhd on September 2, 2024 and sell it today you would earn a total of 2.00 from holding Sapura Industrial Bhd or generate 2.44% 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. Sapura Industrial Bhd
Performance |
| Timeline |
| Swift Haulage Bhd |
| Sapura Industrial Bhd |
Swift Haulage and Sapura Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Swift Haulage and Sapura Industrial
The main advantage of trading using opposite Swift Haulage and Sapura Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swift Haulage position performs unexpectedly, Sapura Industrial 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 Sapura Industrial will offset losses from the drop in Sapura Industrial'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 |
| Sapura Industrial vs. Digistar Bhd | Sapura Industrial vs. Minetech Resources Bhd | Sapura Industrial vs. Swift Haulage Bhd | Sapura Industrial vs. Bina Darulaman 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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