Correlation Between Sungei Bagan and Apex Healthcare
Can any of the company-specific risk be diversified away by investing in both Sungei Bagan 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 Sungei Bagan and Apex Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sungei Bagan Rubber and Apex Healthcare Bhd, you can compare the effects of market volatilities on Sungei Bagan 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 Sungei Bagan with a short position of Apex Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sungei Bagan and Apex Healthcare.
Diversification Opportunities for Sungei Bagan and Apex Healthcare
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sungei and Apex is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Sungei Bagan Rubber 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 Sungei Bagan 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 Sungei Bagan Rubber 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 Sungei Bagan i.e., Sungei Bagan and Apex Healthcare go up and down completely randomly.
Pair Corralation between Sungei Bagan and Apex Healthcare
Assuming the 90 days trading horizon Sungei Bagan Rubber is expected to generate 0.86 times more return on investment than Apex Healthcare. However, Sungei Bagan Rubber is 1.17 times less risky than Apex Healthcare. It trades about -0.3 of its potential returns per unit of risk. Apex Healthcare Bhd is currently generating about -0.34 per unit of risk. If you would invest 600.00 in Sungei Bagan Rubber on September 2, 2024 and sell it today you would lose (34.00) from holding Sungei Bagan Rubber or give up 5.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sungei Bagan Rubber vs. Apex Healthcare Bhd
Performance |
| Timeline |
| Sungei Bagan Rubber |
| Apex Healthcare Bhd |
Sungei Bagan and Apex Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sungei Bagan and Apex Healthcare
The main advantage of trading using opposite Sungei Bagan and Apex Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sungei Bagan 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.| Sungei Bagan vs. British American Tobacco | Sungei Bagan vs. FARM FRESH BERHAD | Sungei Bagan vs. Apollo Food Holdings |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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