Correlation Between Kossan Rubber and Swift Haulage
Can any of the company-specific risk be diversified away by investing in both Kossan Rubber 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 Kossan Rubber and Swift Haulage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kossan Rubber Industries and Swift Haulage Bhd, you can compare the effects of market volatilities on Kossan Rubber 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 Kossan Rubber with a short position of Swift Haulage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kossan Rubber and Swift Haulage.
Diversification Opportunities for Kossan Rubber and Swift Haulage
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Kossan and Swift is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Kossan Rubber Industries 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 Kossan Rubber 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 Kossan Rubber Industries 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 Kossan Rubber i.e., Kossan Rubber and Swift Haulage go up and down completely randomly.
Pair Corralation between Kossan Rubber and Swift Haulage
Assuming the 90 days trading horizon Kossan Rubber Industries is expected to generate 1.02 times more return on investment than Swift Haulage. However, Kossan Rubber is 1.02 times more volatile than Swift Haulage Bhd. It trades about 0.32 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 215.00 in Kossan Rubber Industries on September 3, 2024 and sell it today you would earn a total of 33.00 from holding Kossan Rubber Industries or generate 15.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kossan Rubber Industries vs. Swift Haulage Bhd
Performance |
| Timeline |
| Kossan Rubber Industries |
| Swift Haulage Bhd |
Kossan Rubber and Swift Haulage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kossan Rubber and Swift Haulage
The main advantage of trading using opposite Kossan Rubber and Swift Haulage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kossan Rubber 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.| Kossan Rubber vs. Minetech Resources Bhd | Kossan Rubber vs. Swift Haulage Bhd | Kossan Rubber vs. Insas Bhd | Kossan Rubber vs. Bina Darulaman Bhd |
| Swift Haulage vs. Radiant Globaltech Bhd | Swift Haulage vs. EA Technique M | Swift Haulage vs. Kobay Tech Bhd | Swift Haulage vs. Resintech 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios |