Correlation Between Alliance Financial and Apex Healthcare
Can any of the company-specific risk be diversified away by investing in both Alliance Financial 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 Alliance Financial and Apex Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alliance Financial Group and Apex Healthcare Bhd, you can compare the effects of market volatilities on Alliance Financial 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 Alliance Financial with a short position of Apex Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alliance Financial and Apex Healthcare.
Diversification Opportunities for Alliance Financial and Apex Healthcare
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alliance and Apex is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Alliance Financial Group 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 Alliance Financial 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 Alliance Financial Group 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 Alliance Financial i.e., Alliance Financial and Apex Healthcare go up and down completely randomly.
Pair Corralation between Alliance Financial and Apex Healthcare
Assuming the 90 days trading horizon Alliance Financial Group is expected to generate 1.45 times more return on investment than Apex Healthcare. However, Alliance Financial is 1.45 times more volatile than Apex Healthcare Bhd. It trades about 0.19 of its potential returns per unit of risk. Apex Healthcare Bhd is currently generating about -0.01 per unit of risk. If you would invest 488.00 in Alliance Financial Group on November 2, 2024 and sell it today you would earn a total of 28.00 from holding Alliance Financial Group or generate 5.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alliance Financial Group vs. Apex Healthcare Bhd
Performance |
| Timeline |
| Alliance Financial |
| Apex Healthcare Bhd |
Alliance Financial and Apex Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alliance Financial and Apex Healthcare
The main advantage of trading using opposite Alliance Financial and Apex Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alliance Financial 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.| Alliance Financial vs. Lotte Chemical Titan | Alliance Financial vs. Eonmetall Group Bhd | Alliance Financial vs. Press Metal Bhd | Alliance Financial vs. Kluang Rubber |
| Apex Healthcare vs. Bank Islam Malaysia | Apex Healthcare vs. Aeon Credit Service | Apex Healthcare vs. Greatech Technology Bhd | Apex Healthcare vs. Computer Forms 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |