Correlation Between Al Aqar and Farm Price
Can any of the company-specific risk be diversified away by investing in both Al Aqar and Farm Price 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 Farm Price 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 Farm Price Holdings, you can compare the effects of market volatilities on Al Aqar and Farm Price 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 Farm Price. Check out your portfolio center. Please also check ongoing floating volatility patterns of Al Aqar and Farm Price.
Diversification Opportunities for Al Aqar and Farm Price
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 5116 and Farm is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Al Aqar Healthcare and Farm Price Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Farm Price Holdings 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 Farm Price. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Farm Price Holdings has no effect on the direction of Al Aqar i.e., Al Aqar and Farm Price go up and down completely randomly.
Pair Corralation between Al Aqar and Farm Price
Assuming the 90 days trading horizon Al Aqar Healthcare is expected to generate 0.56 times more return on investment than Farm Price. However, Al Aqar Healthcare is 1.77 times less risky than Farm Price. It trades about 0.0 of its potential returns per unit of risk. Farm Price Holdings is currently generating about -0.15 per unit of risk. If you would invest 130.00 in Al Aqar Healthcare on November 2, 2024 and sell it today you would earn a total of 0.00 from holding Al Aqar Healthcare or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Al Aqar Healthcare vs. Farm Price Holdings
Performance |
| Timeline |
| Al Aqar Healthcare |
| Farm Price Holdings |
Al Aqar and Farm Price Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Al Aqar and Farm Price
The main advantage of trading using opposite Al Aqar and Farm Price positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Al Aqar position performs unexpectedly, Farm Price 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 Farm Price will offset losses from the drop in Farm Price's long position.| Al Aqar vs. Awanbiru Technology Bhd | Al Aqar vs. Public Bank Bhd | Al Aqar vs. Malayan Banking Bhd | Al Aqar vs. Bank Islam Malaysia |
| Farm Price vs. PIE Industrial Bhd | Farm Price vs. Sports Toto Berhad | Farm Price vs. Central Industrial Corp | Farm Price vs. Al Aqar Healthcare |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |