Correlation Between Tenaga Nasional and Swift Haulage
Can any of the company-specific risk be diversified away by investing in both Tenaga Nasional and Swift Haulage 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 Tenaga Nasional and Swift Haulage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenaga Nasional Bhd and Swift Haulage Bhd, you can compare the effects of market volatilities on Tenaga Nasional and Swift Haulage 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 Tenaga Nasional with a short position of Swift Haulage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaga Nasional and Swift Haulage.
Diversification Opportunities for Tenaga Nasional and Swift Haulage
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tenaga and Swift is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Tenaga Nasional Bhd and Swift Haulage Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Swift Haulage Bhd and Tenaga Nasional 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 Tenaga Nasional Bhd are associated (or correlated) with Swift Haulage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Swift Haulage Bhd has no effect on the direction of Tenaga Nasional i.e., Tenaga Nasional and Swift Haulage go up and down completely randomly.
Pair Corralation between Tenaga Nasional and Swift Haulage
Assuming the 90 days trading horizon Tenaga Nasional Bhd is expected to generate 0.6 times more return on investment than Swift Haulage. However, Tenaga Nasional Bhd is 1.66 times less risky than Swift Haulage. It trades about 0.01 of its potential returns per unit of risk. Swift Haulage Bhd is currently generating about -0.13 per unit of risk. If you would invest 1,400 in Tenaga Nasional Bhd on August 27, 2024 and sell it today you would earn a total of 0.00 from holding Tenaga Nasional Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tenaga Nasional Bhd vs. Swift Haulage Bhd
Performance |
| Timeline |
| Tenaga Nasional Bhd |
| Swift Haulage Bhd |
Tenaga Nasional and Swift Haulage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tenaga Nasional and Swift Haulage
The main advantage of trading using opposite Tenaga Nasional and Swift Haulage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaga Nasional position performs unexpectedly, Swift Haulage 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 Swift Haulage will offset losses from the drop in Swift Haulage's long position.| Tenaga Nasional vs. YX Precious Metals | Tenaga Nasional vs. Oriental Food Industries | Tenaga Nasional vs. Berjaya Food Bhd | Tenaga Nasional vs. SSF Home Group |
| Swift Haulage vs. Malayan Banking Bhd | Swift Haulage vs. Public Bank Bhd | Swift Haulage vs. Petronas Chemicals Group | Swift Haulage 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |