Correlation Between Insas Bhd and Heineken Bhd
Can any of the company-specific risk be diversified away by investing in both Insas Bhd and Heineken Bhd 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 Insas Bhd and Heineken Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insas Bhd and Heineken Bhd, you can compare the effects of market volatilities on Insas Bhd and Heineken Bhd 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 Insas Bhd with a short position of Heineken Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insas Bhd and Heineken Bhd.
Diversification Opportunities for Insas Bhd and Heineken Bhd
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Insas and Heineken is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Insas Bhd and Heineken Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heineken Bhd and Insas 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 Insas Bhd are associated (or correlated) with Heineken Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heineken Bhd has no effect on the direction of Insas Bhd i.e., Insas Bhd and Heineken Bhd go up and down completely randomly.
Pair Corralation between Insas Bhd and Heineken Bhd
Assuming the 90 days trading horizon Insas Bhd is expected to generate 2.39 times more return on investment than Heineken Bhd. However, Insas Bhd is 2.39 times more volatile than Heineken Bhd. It trades about -0.05 of its potential returns per unit of risk. Heineken Bhd is currently generating about -0.13 per unit of risk. If you would invest 92.00 in Insas Bhd on November 2, 2024 and sell it today you would lose (1.00) from holding Insas Bhd or give up 1.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Insas Bhd vs. Heineken Bhd
Performance |
| Timeline |
| Insas Bhd |
| Heineken Bhd |
Insas Bhd and Heineken Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insas Bhd and Heineken Bhd
The main advantage of trading using opposite Insas Bhd and Heineken Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insas Bhd position performs unexpectedly, Heineken Bhd 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 Heineken Bhd will offset losses from the drop in Heineken Bhd's long position.| Insas Bhd vs. Senheng New Retail | Insas Bhd vs. Carlsberg Brewery Malaysia | Insas Bhd vs. K One Technology Bhd | Insas Bhd vs. Petronas Chemicals Group |
| Heineken Bhd vs. Carlsberg Brewery Malaysia | Heineken Bhd vs. Nexgram Holdings Bhd | Heineken Bhd vs. Techfast Holdings 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |