Correlation Between Jaya Tiasa and Ta Ann
Can any of the company-specific risk be diversified away by investing in both Jaya Tiasa and Ta Ann 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 Jaya Tiasa and Ta Ann into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jaya Tiasa Holdings and Ta Ann Holdings, you can compare the effects of market volatilities on Jaya Tiasa and Ta Ann 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 Jaya Tiasa with a short position of Ta Ann. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jaya Tiasa and Ta Ann.
Diversification Opportunities for Jaya Tiasa and Ta Ann
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jaya and 5012 is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jaya Tiasa Holdings and Ta Ann Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ta Ann Holdings and Jaya Tiasa 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 Jaya Tiasa Holdings are associated (or correlated) with Ta Ann. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ta Ann Holdings has no effect on the direction of Jaya Tiasa i.e., Jaya Tiasa and Ta Ann go up and down completely randomly.
Pair Corralation between Jaya Tiasa and Ta Ann
Assuming the 90 days trading horizon Jaya Tiasa Holdings is expected to generate 1.5 times more return on investment than Ta Ann. However, Jaya Tiasa is 1.5 times more volatile than Ta Ann Holdings. It trades about -0.06 of its potential returns per unit of risk. Ta Ann Holdings is currently generating about -0.19 per unit of risk. If you would invest 137.00 in Jaya Tiasa Holdings on December 2, 2024 and sell it today you would lose (11.00) from holding Jaya Tiasa Holdings or give up 8.03% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jaya Tiasa Holdings vs. Ta Ann Holdings
Performance |
Timeline |
Jaya Tiasa Holdings |
Ta Ann Holdings |
Jaya Tiasa and Ta Ann Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jaya Tiasa and Ta Ann
The main advantage of trading using opposite Jaya Tiasa and Ta Ann positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jaya Tiasa position performs unexpectedly, Ta Ann 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 Ta Ann will offset losses from the drop in Ta Ann's long position.Jaya Tiasa vs. Ta Ann Holdings | Jaya Tiasa vs. Focus Lumber Bhd | Jaya Tiasa vs. EA Technique M | Jaya Tiasa vs. Saudee Group Bhd |
Ta Ann vs. Oriental Food Industries | Ta Ann vs. PMB Technology Bhd | Ta Ann vs. Malaysia Steel Works | Ta Ann vs. Tex Cycle Technology |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |