Correlation Between Lyc Healthcare and TAS Offshore
Can any of the company-specific risk be diversified away by investing in both Lyc Healthcare and TAS Offshore 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 TAS Offshore 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 TAS Offshore Bhd, you can compare the effects of market volatilities on Lyc Healthcare and TAS Offshore 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 TAS Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyc Healthcare and TAS Offshore.
Diversification Opportunities for Lyc Healthcare and TAS Offshore
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lyc and TAS is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Lyc Healthcare Bhd and TAS Offshore Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TAS Offshore 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 TAS Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TAS Offshore Bhd has no effect on the direction of Lyc Healthcare i.e., Lyc Healthcare and TAS Offshore go up and down completely randomly.
Pair Corralation between Lyc Healthcare and TAS Offshore
Assuming the 90 days trading horizon Lyc Healthcare Bhd is expected to generate 1.59 times more return on investment than TAS Offshore. However, Lyc Healthcare is 1.59 times more volatile than TAS Offshore Bhd. It trades about 0.02 of its potential returns per unit of risk. TAS Offshore Bhd is currently generating about -0.02 per unit of risk. If you would invest 9.00 in Lyc Healthcare Bhd on September 3, 2024 and sell it today you would earn a total of 0.00 from holding Lyc Healthcare Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lyc Healthcare Bhd vs. TAS Offshore Bhd
Performance |
| Timeline |
| Lyc Healthcare Bhd |
| TAS Offshore Bhd |
Lyc Healthcare and TAS Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyc Healthcare and TAS Offshore
The main advantage of trading using opposite Lyc Healthcare and TAS Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyc Healthcare position performs unexpectedly, TAS Offshore 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 TAS Offshore will offset losses from the drop in TAS Offshore's long position.| Lyc Healthcare vs. YX Precious Metals | Lyc Healthcare vs. BP Plastics Holding | Lyc Healthcare vs. Alliance Financial Group | Lyc Healthcare vs. Binasat Communications Bhd |
| TAS Offshore vs. Greatech Technology Bhd | TAS Offshore vs. Genetec Technology Bhd | TAS Offshore vs. PIE Industrial Bhd | TAS Offshore vs. Dufu Tech Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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