Correlation Between DC HEALTHCARE and ATA IMS
Can any of the company-specific risk be diversified away by investing in both DC HEALTHCARE and ATA IMS 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 DC HEALTHCARE and ATA IMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between DC HEALTHCARE HOLDINGS and ATA IMS Bhd, you can compare the effects of market volatilities on DC HEALTHCARE and ATA IMS 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 DC HEALTHCARE with a short position of ATA IMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of DC HEALTHCARE and ATA IMS.
Diversification Opportunities for DC HEALTHCARE and ATA IMS
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 0283 and ATA is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding DC HEALTHCARE HOLDINGS and ATA IMS Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATA IMS Bhd and DC 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 DC HEALTHCARE HOLDINGS are associated (or correlated) with ATA IMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATA IMS Bhd has no effect on the direction of DC HEALTHCARE i.e., DC HEALTHCARE and ATA IMS go up and down completely randomly.
Pair Corralation between DC HEALTHCARE and ATA IMS
Assuming the 90 days trading horizon DC HEALTHCARE HOLDINGS is expected to generate 0.97 times more return on investment than ATA IMS. However, DC HEALTHCARE HOLDINGS is 1.04 times less risky than ATA IMS. It trades about 0.1 of its potential returns per unit of risk. ATA IMS Bhd is currently generating about -0.03 per unit of risk. If you would invest 16.00 in DC HEALTHCARE HOLDINGS on August 30, 2024 and sell it today you would earn a total of 1.00 from holding DC HEALTHCARE HOLDINGS or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
DC HEALTHCARE HOLDINGS vs. ATA IMS Bhd
Performance |
| Timeline |
| DC HEALTHCARE HOLDINGS |
| ATA IMS Bhd |
DC HEALTHCARE and ATA IMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DC HEALTHCARE and ATA IMS
The main advantage of trading using opposite DC HEALTHCARE and ATA IMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DC HEALTHCARE position performs unexpectedly, ATA IMS 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 ATA IMS will offset losses from the drop in ATA IMS's long position.| DC HEALTHCARE vs. Eversafe Rubber Bhd | DC HEALTHCARE vs. Riverview Rubber Estates | DC HEALTHCARE vs. BP Plastics Holding | DC HEALTHCARE vs. FARM FRESH BERHAD |
| ATA IMS vs. DC HEALTHCARE HOLDINGS | ATA IMS vs. TAS Offshore Bhd | ATA IMS vs. Southern Steel Bhd | ATA IMS vs. Press Metal 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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