Correlation Between TAS Offshore and JF Technology
Can any of the company-specific risk be diversified away by investing in both TAS Offshore and JF Technology 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 TAS Offshore and JF Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TAS Offshore Bhd and JF Technology BHD, you can compare the effects of market volatilities on TAS Offshore and JF Technology 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 TAS Offshore with a short position of JF Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of TAS Offshore and JF Technology.
Diversification Opportunities for TAS Offshore and JF Technology
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between TAS and 0146 is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding TAS Offshore Bhd and JF Technology BHD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JF Technology BHD and TAS Offshore 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 TAS Offshore Bhd are associated (or correlated) with JF Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JF Technology BHD has no effect on the direction of TAS Offshore i.e., TAS Offshore and JF Technology go up and down completely randomly.
Pair Corralation between TAS Offshore and JF Technology
Assuming the 90 days trading horizon TAS Offshore Bhd is expected to generate 0.77 times more return on investment than JF Technology. However, TAS Offshore Bhd is 1.3 times less risky than JF Technology. It trades about -0.04 of its potential returns per unit of risk. JF Technology BHD is currently generating about -0.26 per unit of risk. If you would invest 63.00 in TAS Offshore Bhd on December 30, 2024 and sell it today you would lose (4.00) from holding TAS Offshore Bhd or give up 6.35% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
TAS Offshore Bhd vs. JF Technology BHD
Performance |
Timeline |
TAS Offshore Bhd |
JF Technology BHD |
TAS Offshore and JF Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TAS Offshore and JF Technology
The main advantage of trading using opposite TAS Offshore and JF Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TAS Offshore position performs unexpectedly, JF Technology 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 JF Technology will offset losses from the drop in JF Technology's long position.TAS Offshore vs. CSC Steel Holdings | TAS Offshore vs. Privasia Technology Bhd | TAS Offshore vs. British American Tobacco | TAS Offshore vs. PMB Technology Bhd |
JF Technology vs. Malaysia Steel Works | JF Technology vs. YTL Hospitality REIT | JF Technology vs. Binasat Communications Bhd | JF Technology vs. Public Packages Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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