Correlation Between SSF Home and KPJ Healthcare
Can any of the company-specific risk be diversified away by investing in both SSF Home 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 SSF Home and KPJ Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SSF Home Group and KPJ Healthcare Bhd, you can compare the effects of market volatilities on SSF Home 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 SSF Home with a short position of KPJ Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of SSF Home and KPJ Healthcare.
Diversification Opportunities for SSF Home and KPJ Healthcare
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between SSF and KPJ is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding SSF Home Group 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 SSF Home 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 SSF Home Group 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 SSF Home i.e., SSF Home and KPJ Healthcare go up and down completely randomly.
Pair Corralation between SSF Home and KPJ Healthcare
Assuming the 90 days trading horizon SSF Home Group is expected to generate 1.7 times more return on investment than KPJ Healthcare. However, SSF Home is 1.7 times more volatile than KPJ Healthcare Bhd. It trades about 0.14 of its potential returns per unit of risk. KPJ Healthcare Bhd is currently generating about -0.14 per unit of risk. If you would invest 35.00 in SSF Home Group on November 4, 2024 and sell it today you would earn a total of 2.00 from holding SSF Home Group or generate 5.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SSF Home Group vs. KPJ Healthcare Bhd
Performance |
| Timeline |
| SSF Home Group |
| KPJ Healthcare Bhd |
SSF Home and KPJ Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SSF Home and KPJ Healthcare
The main advantage of trading using opposite SSF Home and KPJ Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SSF Home 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.| SSF Home vs. YTL Hospitality REIT | SSF Home vs. Steel Hawk Berhad | SSF Home vs. PIE Industrial Bhd | SSF Home vs. Mycron Steel Bhd |
| KPJ Healthcare vs. Senheng New Retail | KPJ Healthcare vs. Dnonce Tech Bhd | KPJ Healthcare vs. IHH Healthcare Bhd | KPJ Healthcare vs. Farm Price Holdings |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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