Correlation Between MISC Bhd and Lyc Healthcare
Can any of the company-specific risk be diversified away by investing in both MISC Bhd and Lyc 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 MISC Bhd and Lyc Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MISC Bhd and Lyc Healthcare Bhd, you can compare the effects of market volatilities on MISC Bhd and Lyc 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 MISC Bhd with a short position of Lyc Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of MISC Bhd and Lyc Healthcare.
Diversification Opportunities for MISC Bhd and Lyc Healthcare
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MISC and Lyc is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding MISC Bhd and Lyc Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyc Healthcare Bhd and MISC 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 MISC Bhd are associated (or correlated) with Lyc Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyc Healthcare Bhd has no effect on the direction of MISC Bhd i.e., MISC Bhd and Lyc Healthcare go up and down completely randomly.
Pair Corralation between MISC Bhd and Lyc Healthcare
Assuming the 90 days trading horizon MISC Bhd is expected to generate 0.21 times more return on investment than Lyc Healthcare. However, MISC Bhd is 4.8 times less risky than Lyc Healthcare. It trades about 0.03 of its potential returns per unit of risk. Lyc Healthcare Bhd is currently generating about -0.02 per unit of risk. If you would invest 653.00 in MISC Bhd on September 2, 2024 and sell it today you would earn a total of 72.00 from holding MISC Bhd or generate 11.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MISC Bhd vs. Lyc Healthcare Bhd
Performance |
| Timeline |
| MISC Bhd |
| Lyc Healthcare Bhd |
MISC Bhd and Lyc Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MISC Bhd and Lyc Healthcare
The main advantage of trading using opposite MISC Bhd and Lyc Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MISC Bhd position performs unexpectedly, Lyc 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 Lyc Healthcare will offset losses from the drop in Lyc Healthcare's long position.| MISC Bhd vs. Lyc Healthcare Bhd | MISC Bhd vs. Sunway Construction Group | MISC Bhd vs. Al Aqar Healthcare | MISC Bhd vs. Datasonic Group Bhd |
| Lyc Healthcare vs. IHH Healthcare Bhd | Lyc Healthcare vs. Digistar Bhd | Lyc Healthcare vs. Minetech Resources Bhd | Lyc Healthcare vs. Swift Haulage 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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