Correlation Between Lysaght Galvanized and Swift Haulage
Can any of the company-specific risk be diversified away by investing in both Lysaght Galvanized 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 Lysaght Galvanized and Swift Haulage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lysaght Galvanized Steel and Swift Haulage Bhd, you can compare the effects of market volatilities on Lysaght Galvanized 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 Lysaght Galvanized with a short position of Swift Haulage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lysaght Galvanized and Swift Haulage.
Diversification Opportunities for Lysaght Galvanized and Swift Haulage
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lysaght and Swift is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Lysaght Galvanized Steel 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 Lysaght Galvanized 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 Lysaght Galvanized Steel 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 Lysaght Galvanized i.e., Lysaght Galvanized and Swift Haulage go up and down completely randomly.
Pair Corralation between Lysaght Galvanized and Swift Haulage
Assuming the 90 days trading horizon Lysaght Galvanized Steel is expected to generate 4.78 times more return on investment than Swift Haulage. However, Lysaght Galvanized is 4.78 times more volatile than Swift Haulage Bhd. It trades about 0.05 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 231.00 in Lysaght Galvanized Steel on September 2, 2024 and sell it today you would earn a total of 48.00 from holding Lysaght Galvanized Steel or generate 20.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.59% |
| Values | Daily Returns |
Lysaght Galvanized Steel vs. Swift Haulage Bhd
Performance |
| Timeline |
| Lysaght Galvanized Steel |
| Swift Haulage Bhd |
Lysaght Galvanized and Swift Haulage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lysaght Galvanized and Swift Haulage
The main advantage of trading using opposite Lysaght Galvanized and Swift Haulage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lysaght Galvanized 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.The idea behind Lysaght Galvanized Steel and Swift Haulage Bhd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |