Correlation Between Lyc Healthcare and Aurelius Technologies
Can any of the company-specific risk be diversified away by investing in both Lyc Healthcare and Aurelius Technologies 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 Aurelius Technologies 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 Aurelius Technologies Bhd, you can compare the effects of market volatilities on Lyc Healthcare and Aurelius Technologies 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 Aurelius Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lyc Healthcare and Aurelius Technologies.
Diversification Opportunities for Lyc Healthcare and Aurelius Technologies
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lyc and Aurelius is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Lyc Healthcare Bhd and Aurelius Technologies Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aurelius Technologies 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 Aurelius Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aurelius Technologies Bhd has no effect on the direction of Lyc Healthcare i.e., Lyc Healthcare and Aurelius Technologies go up and down completely randomly.
Pair Corralation between Lyc Healthcare and Aurelius Technologies
Assuming the 90 days trading horizon Lyc Healthcare Bhd is expected to under-perform the Aurelius Technologies. In addition to that, Lyc Healthcare is 2.02 times more volatile than Aurelius Technologies Bhd. It trades about -0.02 of its total potential returns per unit of risk. Aurelius Technologies Bhd is currently generating about 0.04 per unit of volatility. If you would invest 240.00 in Aurelius Technologies Bhd on October 17, 2024 and sell it today you would earn a total of 94.00 from holding Aurelius Technologies Bhd or generate 39.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Lyc Healthcare Bhd vs. Aurelius Technologies Bhd
Performance |
| Timeline |
| Lyc Healthcare Bhd |
| Aurelius Technologies Bhd |
Lyc Healthcare and Aurelius Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lyc Healthcare and Aurelius Technologies
The main advantage of trading using opposite Lyc Healthcare and Aurelius Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lyc Healthcare position performs unexpectedly, Aurelius Technologies 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 Aurelius Technologies will offset losses from the drop in Aurelius Technologies' long position.| Lyc Healthcare vs. IHH Healthcare Bhd | Lyc Healthcare vs. KPJ Healthcare Bhd | Lyc Healthcare vs. Mesiniaga Bhd | Lyc Healthcare vs. OSK Holdings Bhd |
| Aurelius Technologies vs. Lyc Healthcare Bhd | Aurelius Technologies vs. PMB Technology Bhd | Aurelius Technologies vs. Oriental Food Industries | Aurelius Technologies vs. Berjaya Food 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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