Correlation Between Al Aqar and Apex Healthcare
Can any of the company-specific risk be diversified away by investing in both Al Aqar 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 Al Aqar and Apex Healthcare 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 Apex Healthcare Bhd, you can compare the effects of market volatilities on Al Aqar 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 Al Aqar with a short position of Apex Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Al Aqar and Apex Healthcare.
Diversification Opportunities for Al Aqar and Apex Healthcare
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 5116 and Apex is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Al Aqar Healthcare 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 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 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 Al Aqar i.e., Al Aqar and Apex Healthcare go up and down completely randomly.
Pair Corralation between Al Aqar and Apex Healthcare
Assuming the 90 days trading horizon Al Aqar Healthcare is expected to generate 1.02 times more return on investment than Apex Healthcare. However, Al Aqar is 1.02 times more volatile than Apex Healthcare Bhd. It trades about 0.0 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 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Al Aqar Healthcare vs. Apex Healthcare Bhd
Performance |
| Timeline |
| Al Aqar Healthcare |
| Apex Healthcare Bhd |
Al Aqar and Apex Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Al Aqar and Apex Healthcare
The main advantage of trading using opposite Al Aqar and Apex Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Al Aqar 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.| Al Aqar vs. Awanbiru Technology Bhd | Al Aqar vs. Public Bank Bhd | Al Aqar vs. Malayan Banking Bhd | Al Aqar vs. Bank Islam Malaysia |
| Apex Healthcare vs. Bank Islam Malaysia | Apex Healthcare vs. Aeon Credit Service | Apex Healthcare vs. Greatech Technology Bhd | Apex Healthcare vs. Computer Forms 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |