Correlation Between Lyc Healthcare and Malayan Banking
Can any of the company-specific risk be diversified away by investing in both Lyc Healthcare and Malayan Banking 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 Lyc Healthcare and Malayan Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Lyc Healthcare Bhd and Malayan Banking Bhd, you can compare the effects of market volatilities on Lyc Healthcare and Malayan Banking 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 Lyc Healthcare with a short position of Malayan Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyc Healthcare and Malayan Banking.
Diversification Opportunities for Lyc Healthcare and Malayan Banking
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Lyc and Malayan is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Lyc Healthcare Bhd and Malayan Banking Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malayan Banking Bhd and Lyc Healthcare 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 Lyc Healthcare Bhd are associated (or correlated) with Malayan Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malayan Banking Bhd has no effect on the direction of Lyc Healthcare i.e., Lyc Healthcare and Malayan Banking go up and down completely randomly.
Pair Corralation between Lyc Healthcare and Malayan Banking
Assuming the 90 days trading horizon Lyc Healthcare Bhd is expected to under-perform the Malayan Banking. In addition to that, Lyc Healthcare is 6.46 times more volatile than Malayan Banking Bhd. It trades about -0.05 of its total potential returns per unit of risk. Malayan Banking Bhd is currently generating about 0.11 per unit of volatility. If you would invest 838.00 in Malayan Banking Bhd on October 16, 2024 and sell it today you would earn a total of 170.00 from holding Malayan Banking Bhd or generate 20.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 99.62% |
| Values | Daily Returns |
Lyc Healthcare Bhd vs. Malayan Banking Bhd
Performance |
| Timeline |
| Lyc Healthcare Bhd |
| Malayan Banking Bhd |
Lyc Healthcare and Malayan Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyc Healthcare and Malayan Banking
The main advantage of trading using opposite Lyc Healthcare and Malayan Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyc Healthcare position performs unexpectedly, Malayan Banking 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 Malayan Banking will offset losses from the drop in Malayan Banking's long position.| Lyc Healthcare vs. Al Aqar Healthcare | Lyc Healthcare vs. Awanbiru Technology Bhd | Lyc Healthcare vs. Shangri La Hotels | Lyc Healthcare vs. KPJ Healthcare Bhd |
| Malayan Banking vs. Press Metal Bhd | Malayan Banking vs. IHH Healthcare Bhd | Malayan Banking vs. Eonmetall Group Bhd | Malayan Banking vs. Sports Toto Berhad |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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