Correlation Between Resintech Bhd and Swift Haulage
Can any of the company-specific risk be diversified away by investing in both Resintech Bhd 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 Resintech Bhd and Swift Haulage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Resintech Bhd and Swift Haulage Bhd, you can compare the effects of market volatilities on Resintech Bhd 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 Resintech Bhd with a short position of Swift Haulage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Resintech Bhd and Swift Haulage.
Diversification Opportunities for Resintech Bhd and Swift Haulage
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Resintech and Swift is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Resintech 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 Resintech Bhd 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 Resintech 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 Resintech Bhd i.e., Resintech Bhd and Swift Haulage go up and down completely randomly.
Pair Corralation between Resintech Bhd and Swift Haulage
Assuming the 90 days trading horizon Resintech Bhd is expected to generate 0.99 times more return on investment than Swift Haulage. However, Resintech Bhd is 1.01 times less risky than Swift Haulage. It trades about 0.06 of its potential returns per unit of risk. Swift Haulage Bhd is currently generating about -0.02 per unit of risk. If you would invest 49.00 in Resintech Bhd on August 31, 2024 and sell it today you would earn a total of 14.00 from holding Resintech Bhd or generate 28.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Resintech Bhd vs. Swift Haulage Bhd
Performance |
| Timeline |
| Resintech Bhd |
| Swift Haulage Bhd |
Resintech Bhd and Swift Haulage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Resintech Bhd and Swift Haulage
The main advantage of trading using opposite Resintech Bhd and Swift Haulage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Resintech Bhd 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.| Resintech Bhd vs. Digistar Bhd | Resintech Bhd vs. Minetech Resources Bhd | Resintech Bhd vs. Swift Haulage Bhd | Resintech Bhd vs. Bina Darulaman Bhd |
| Swift Haulage vs. Choo Bee Metal | Swift Haulage vs. Resintech Bhd | Swift Haulage vs. Binasat Communications Bhd | Swift Haulage vs. Magni Tech Industries |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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