Correlation Between Mesiniaga Bhd and Apex Healthcare
Can any of the company-specific risk be diversified away by investing in both Mesiniaga 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 Mesiniaga 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 Mesiniaga Bhd and Apex Healthcare Bhd, you can compare the effects of market volatilities on Mesiniaga 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 Mesiniaga Bhd with a short position of Apex Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mesiniaga Bhd and Apex Healthcare.
Diversification Opportunities for Mesiniaga Bhd and Apex Healthcare
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mesiniaga and Apex is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Mesiniaga 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 Mesiniaga 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 Mesiniaga 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 Mesiniaga Bhd i.e., Mesiniaga Bhd and Apex Healthcare go up and down completely randomly.
Pair Corralation between Mesiniaga Bhd and Apex Healthcare
Assuming the 90 days trading horizon Mesiniaga Bhd is expected to generate 1.65 times more return on investment than Apex Healthcare. However, Mesiniaga Bhd is 1.65 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 -0.08 per unit of risk. If you would invest 147.00 in Mesiniaga Bhd on November 2, 2024 and sell it today you would earn a total of 1.00 from holding Mesiniaga Bhd or generate 0.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mesiniaga Bhd vs. Apex Healthcare Bhd
Performance |
| Timeline |
| Mesiniaga Bhd |
| Apex Healthcare Bhd |
Mesiniaga Bhd and Apex Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mesiniaga Bhd and Apex Healthcare
The main advantage of trading using opposite Mesiniaga Bhd and Apex Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mesiniaga 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.| Mesiniaga Bhd vs. Malayan Banking Bhd | Mesiniaga Bhd vs. Public Bank Bhd | Mesiniaga Bhd vs. Petronas Chemicals Group | Mesiniaga Bhd vs. Tenaga Nasional Bhd |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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