Correlation Between YX Precious and Apex Healthcare
Can any of the company-specific risk be diversified away by investing in both YX Precious and Apex 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 YX Precious and Apex Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between YX Precious Metals and Apex Healthcare Bhd, you can compare the effects of market volatilities on YX Precious and Apex 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 YX Precious with a short position of Apex Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of YX Precious and Apex Healthcare.
Diversification Opportunities for YX Precious and Apex Healthcare
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 0250 and Apex is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding YX Precious Metals and Apex Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Healthcare Bhd and YX Precious 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 YX Precious Metals are associated (or correlated) with Apex Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Healthcare Bhd has no effect on the direction of YX Precious i.e., YX Precious and Apex Healthcare go up and down completely randomly.
Pair Corralation between YX Precious and Apex Healthcare
Assuming the 90 days trading horizon YX Precious Metals is expected to under-perform the Apex Healthcare. In addition to that, YX Precious is 2.7 times more volatile than Apex Healthcare Bhd. It trades about -0.29 of its total potential returns per unit of risk. Apex Healthcare Bhd is currently generating about -0.24 per unit of volatility. If you would invest 267.00 in Apex Healthcare Bhd on August 31, 2024 and sell it today you would lose (9.00) from holding Apex Healthcare Bhd or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
YX Precious Metals vs. Apex Healthcare Bhd
Performance |
| Timeline |
| YX Precious Metals |
| Apex Healthcare Bhd |
YX Precious and Apex Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YX Precious and Apex Healthcare
The main advantage of trading using opposite YX Precious and Apex Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YX Precious position performs unexpectedly, Apex 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 Apex Healthcare will offset losses from the drop in Apex Healthcare's long position.| YX Precious vs. Malayan Banking Bhd | YX Precious vs. Public Bank Bhd | YX Precious vs. Petronas Chemicals Group | YX Precious vs. Tenaga Nasional Bhd |
| Apex Healthcare vs. Digistar Bhd | Apex Healthcare vs. Minetech Resources Bhd | Apex Healthcare vs. Swift Haulage Bhd | Apex Healthcare vs. Bina Darulaman 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |