Correlation Between Heineken Bhd and Apex Healthcare

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Can any of the company-specific risk be diversified away by investing in both Heineken Bhd 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 Heineken Bhd and Apex Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heineken Bhd and Apex Healthcare Bhd, you can compare the effects of market volatilities on Heineken Bhd 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 Heineken Bhd with a short position of Apex Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heineken Bhd and Apex Healthcare.

Diversification Opportunities for Heineken Bhd and Apex Healthcare

HeinekenApexDiversified AwayHeinekenApexDiversified Away100%
0.25
  Correlation Coefficient

Modest diversification

The 3 months correlation between Heineken and Apex is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Heineken Bhd 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 Heineken Bhd 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 Heineken Bhd 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 Heineken Bhd i.e., Heineken Bhd and Apex Healthcare go up and down completely randomly.

Pair Corralation between Heineken Bhd and Apex Healthcare

Assuming the 90 days trading horizon Heineken Bhd is expected to generate 1.06 times more return on investment than Apex Healthcare. However, Heineken Bhd is 1.06 times more volatile than Apex Healthcare Bhd. It trades about 0.01 of its potential returns per unit of risk. Apex Healthcare Bhd is currently generating about 0.0 per unit of risk. If you would invest  2,609  in Heineken Bhd on November 30, 2024 and sell it today you would earn a total of  143.00  from holding Heineken Bhd or generate 5.48% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Heineken Bhd  vs.  Apex Healthcare Bhd

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-50
JavaScript chart by amCharts 3.21.153255 7090
       Timeline  
Heineken Bhd 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Heineken Bhd are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Heineken Bhd disclosed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb23.52424.52525.52626.52727.5
Apex Healthcare Bhd 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Apex Healthcare Bhd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Apex Healthcare is not utilizing all of its potentials. The latest stock price mess, may contribute to short-term losses for the institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb2.42.452.52.55

Heineken Bhd and Apex Healthcare Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-4.13-3.09-2.05-1.020.01.092.233.364.495.62 0.050.100.150.200.250.300.35
JavaScript chart by amCharts 3.21.153255 7090
       Returns  

Pair Trading with Heineken Bhd and Apex Healthcare

The main advantage of trading using opposite Heineken Bhd and Apex Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heineken Bhd 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.
The idea behind Heineken Bhd and Apex Healthcare Bhd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.

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