Correlation Between Al Aqar and Malayan Banking
Can any of the company-specific risk be diversified away by investing in both Al Aqar and Malayan Banking 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 Malayan Banking 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 Malayan Banking Bhd, you can compare the effects of market volatilities on Al Aqar and Malayan Banking 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 Malayan Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Al Aqar and Malayan Banking.
Diversification Opportunities for Al Aqar and Malayan Banking
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between 5116 and Malayan is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Al Aqar Healthcare and Malayan Banking Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Malayan Banking 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 Malayan Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Malayan Banking Bhd has no effect on the direction of Al Aqar i.e., Al Aqar and Malayan Banking go up and down completely randomly.
Pair Corralation between Al Aqar and Malayan Banking
Assuming the 90 days trading horizon Al Aqar Healthcare is expected to generate 1.49 times more return on investment than Malayan Banking. However, Al Aqar is 1.49 times more volatile than Malayan Banking Bhd. It trades about 0.0 of its potential returns per unit of risk. Malayan Banking Bhd is currently generating about -0.02 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Al Aqar Healthcare vs. Malayan Banking Bhd
Performance |
| Timeline |
| Al Aqar Healthcare |
| Malayan Banking Bhd |
Al Aqar and Malayan Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Al Aqar and Malayan Banking
The main advantage of trading using opposite Al Aqar and Malayan Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Al Aqar position performs unexpectedly, Malayan Banking 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 Malayan Banking will offset losses from the drop in Malayan Banking'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 |
| Malayan Banking vs. Press Metal Bhd | Malayan Banking vs. Computer Forms Bhd | Malayan Banking vs. Melewar Industrial Group | Malayan Banking vs. Kluang Rubber |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |