Correlation Between Insas Bhd and Al Aqar
Can any of the company-specific risk be diversified away by investing in both Insas Bhd and Al Aqar 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 Al Aqar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Insas Bhd and Al Aqar Healthcare, you can compare the effects of market volatilities on Insas Bhd and Al Aqar 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 Al Aqar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Insas Bhd and Al Aqar.
Diversification Opportunities for Insas Bhd and Al Aqar
Excellent diversification
The 3 months correlation between Insas and 5116 is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Insas Bhd and Al Aqar Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Al Aqar Healthcare 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 Al Aqar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Al Aqar Healthcare has no effect on the direction of Insas Bhd i.e., Insas Bhd and Al Aqar go up and down completely randomly.
Pair Corralation between Insas Bhd and Al Aqar
Assuming the 90 days trading horizon Insas Bhd is expected to under-perform the Al Aqar. In addition to that, Insas Bhd is 1.33 times more volatile than Al Aqar Healthcare. It trades about -0.06 of its total potential returns per unit of risk. Al Aqar Healthcare is currently generating about -0.06 per unit of volatility. If you would invest 142.00 in Al Aqar Healthcare on August 31, 2024 and sell it today you would lose (2.00) from holding Al Aqar Healthcare or give up 1.41% 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. Al Aqar Healthcare
Performance |
| Timeline |
| Insas Bhd |
| Al Aqar Healthcare |
Insas Bhd and Al Aqar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Insas Bhd and Al Aqar
The main advantage of trading using opposite Insas Bhd and Al Aqar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Insas Bhd position performs unexpectedly, Al Aqar 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 Al Aqar will offset losses from the drop in Al Aqar's long position.| Insas Bhd vs. Datasonic Group Bhd | Insas Bhd vs. CB Industrial Product | Insas Bhd vs. Press Metal Bhd | Insas Bhd vs. CPE Technology Berhad |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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