Correlation Between MClean Technologies and KPJ Healthcare
Can any of the company-specific risk be diversified away by investing in both MClean Technologies and KPJ Healthcare 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 MClean Technologies and KPJ Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MClean Technologies Bhd and KPJ Healthcare Bhd, you can compare the effects of market volatilities on MClean Technologies and KPJ Healthcare 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 MClean Technologies with a short position of KPJ Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of MClean Technologies and KPJ Healthcare.
Diversification Opportunities for MClean Technologies and KPJ Healthcare
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MClean and KPJ is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding MClean Technologies Bhd and KPJ Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KPJ Healthcare Bhd and MClean Technologies 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 MClean Technologies Bhd are associated (or correlated) with KPJ Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KPJ Healthcare Bhd has no effect on the direction of MClean Technologies i.e., MClean Technologies and KPJ Healthcare go up and down completely randomly.
Pair Corralation between MClean Technologies and KPJ Healthcare
Assuming the 90 days trading horizon MClean Technologies is expected to generate 11.82 times less return on investment than KPJ Healthcare. In addition to that, MClean Technologies is 1.46 times more volatile than KPJ Healthcare Bhd. It trades about 0.01 of its total potential returns per unit of risk. KPJ Healthcare Bhd is currently generating about 0.23 per unit of volatility. If you would invest 228.00 in KPJ Healthcare Bhd on November 28, 2024 and sell it today you would earn a total of 19.00 from holding KPJ Healthcare Bhd or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MClean Technologies Bhd vs. KPJ Healthcare Bhd
Performance |
| Timeline |
| MClean Technologies Bhd |
| KPJ Healthcare Bhd |
MClean Technologies and KPJ Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MClean Technologies and KPJ Healthcare
The main advantage of trading using opposite MClean Technologies and KPJ Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MClean Technologies position performs unexpectedly, KPJ Healthcare 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 KPJ Healthcare will offset losses from the drop in KPJ Healthcare's long position.| MClean Technologies vs. Sunway Construction Group | MClean Technologies vs. DC HEALTHCARE HOLDINGS | MClean Technologies vs. Sports Toto Berhad | MClean Technologies vs. TAS Offshore Bhd |
| KPJ Healthcare vs. Awanbiru Technology Bhd | KPJ Healthcare vs. Farm Price Holdings | KPJ Healthcare vs. Ho Hup Construction | KPJ Healthcare vs. Diversified Gateway Solutions |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years |