Correlation Between Mycron Steel and DC HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Mycron Steel and DC 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 Mycron Steel and DC HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mycron Steel Bhd and DC HEALTHCARE HOLDINGS, you can compare the effects of market volatilities on Mycron Steel and DC 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 Mycron Steel with a short position of DC HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mycron Steel and DC HEALTHCARE.
Diversification Opportunities for Mycron Steel and DC HEALTHCARE
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Mycron and 0283 is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Mycron Steel Bhd and DC HEALTHCARE HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DC HEALTHCARE HOLDINGS and Mycron Steel 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 Mycron Steel Bhd are associated (or correlated) with DC HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DC HEALTHCARE HOLDINGS has no effect on the direction of Mycron Steel i.e., Mycron Steel and DC HEALTHCARE go up and down completely randomly.
Pair Corralation between Mycron Steel and DC HEALTHCARE
Assuming the 90 days trading horizon Mycron Steel Bhd is expected to generate 1.11 times more return on investment than DC HEALTHCARE. However, Mycron Steel is 1.11 times more volatile than DC HEALTHCARE HOLDINGS. It trades about 0.09 of its potential returns per unit of risk. DC HEALTHCARE HOLDINGS is currently generating about 0.02 per unit of risk. If you would invest 37.00 in Mycron Steel Bhd on August 26, 2024 and sell it today you would earn a total of 2.00 from holding Mycron Steel Bhd or generate 5.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mycron Steel Bhd vs. DC HEALTHCARE HOLDINGS
Performance |
| Timeline |
| Mycron Steel Bhd |
| DC HEALTHCARE HOLDINGS |
Mycron Steel and DC HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mycron Steel and DC HEALTHCARE
The main advantage of trading using opposite Mycron Steel and DC HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mycron Steel position performs unexpectedly, DC 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 DC HEALTHCARE will offset losses from the drop in DC HEALTHCARE's long position.| Mycron Steel vs. Press Metal Bhd | Mycron Steel vs. Southern Steel Bhd | Mycron Steel vs. Eonmetall Group Bhd |
| DC HEALTHCARE vs. Malayan Banking Bhd | DC HEALTHCARE vs. Public Bank Bhd | DC HEALTHCARE vs. Petronas Chemicals Group | DC HEALTHCARE vs. Tenaga Nasional 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Transaction History View history of all your transactions and understand their impact on performance |