Correlation Between Al Aqar and Radiant Globaltech
Can any of the company-specific risk be diversified away by investing in both Al Aqar and Radiant Globaltech 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 Al Aqar and Radiant Globaltech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Al Aqar Healthcare and Radiant Globaltech Bhd, you can compare the effects of market volatilities on Al Aqar and Radiant Globaltech 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 Al Aqar with a short position of Radiant Globaltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Al Aqar and Radiant Globaltech.
Diversification Opportunities for Al Aqar and Radiant Globaltech
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 5116 and Radiant is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Al Aqar Healthcare and Radiant Globaltech Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Radiant Globaltech Bhd and Al Aqar 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 Al Aqar Healthcare are associated (or correlated) with Radiant Globaltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Radiant Globaltech Bhd has no effect on the direction of Al Aqar i.e., Al Aqar and Radiant Globaltech go up and down completely randomly.
Pair Corralation between Al Aqar and Radiant Globaltech
Assuming the 90 days trading horizon Al Aqar Healthcare is expected to generate 0.59 times more return on investment than Radiant Globaltech. However, Al Aqar Healthcare is 1.68 times less risky than Radiant Globaltech. It trades about 0.03 of its potential returns per unit of risk. Radiant Globaltech Bhd is currently generating about -0.06 per unit of risk. If you would invest 139.00 in Al Aqar Healthcare on September 12, 2024 and sell it today you would earn a total of 1.00 from holding Al Aqar Healthcare or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Al Aqar Healthcare vs. Radiant Globaltech Bhd
Performance |
| Timeline |
| Al Aqar Healthcare |
| Radiant Globaltech Bhd |
Al Aqar and Radiant Globaltech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Al Aqar and Radiant Globaltech
The main advantage of trading using opposite Al Aqar and Radiant Globaltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Al Aqar position performs unexpectedly, Radiant Globaltech 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 Radiant Globaltech will offset losses from the drop in Radiant Globaltech's long position.| Al Aqar vs. PMB Technology Bhd | Al Aqar vs. Tex Cycle Technology | Al Aqar vs. Cosmos Technology International | Al Aqar vs. YX Precious Metals |
| Radiant Globaltech vs. Mr D I | Radiant Globaltech vs. Senheng New Retail | Radiant Globaltech vs. Al Aqar Healthcare | Radiant Globaltech vs. PMB Technology 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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