Correlation Between Aeon Credit and IHH Healthcare
Can any of the company-specific risk be diversified away by investing in both Aeon Credit and IHH 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 Aeon Credit and IHH Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aeon Credit Service and IHH Healthcare Bhd, you can compare the effects of market volatilities on Aeon Credit and IHH 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 Aeon Credit with a short position of IHH Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aeon Credit and IHH Healthcare.
Diversification Opportunities for Aeon Credit and IHH Healthcare
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Aeon and IHH is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Aeon Credit Service and IHH Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHH Healthcare Bhd and Aeon Credit 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 Aeon Credit Service are associated (or correlated) with IHH Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHH Healthcare Bhd has no effect on the direction of Aeon Credit i.e., Aeon Credit and IHH Healthcare go up and down completely randomly.
Pair Corralation between Aeon Credit and IHH Healthcare
Assuming the 90 days trading horizon Aeon Credit Service is expected to under-perform the IHH Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Aeon Credit Service is 1.14 times less risky than IHH Healthcare. The stock trades about -0.15 of its potential returns per unit of risk. The IHH Healthcare Bhd is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 733.00 in IHH Healthcare Bhd on September 3, 2024 and sell it today you would lose (7.00) from holding IHH Healthcare Bhd or give up 0.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Aeon Credit Service vs. IHH Healthcare Bhd
Performance |
| Timeline |
| Aeon Credit Service |
| IHH Healthcare Bhd |
Aeon Credit and IHH Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Aeon Credit and IHH Healthcare
The main advantage of trading using opposite Aeon Credit and IHH Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aeon Credit position performs unexpectedly, IHH 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 IHH Healthcare will offset losses from the drop in IHH Healthcare's long position.| Aeon Credit vs. Minetech Resources Bhd | Aeon Credit vs. Swift Haulage Bhd | Aeon Credit vs. Insas Bhd | Aeon Credit vs. Bina Darulaman Bhd |
| IHH Healthcare vs. Binasat Communications Bhd | IHH Healthcare vs. Aeon Credit Service | IHH Healthcare vs. KPJ Healthcare Bhd | IHH Healthcare vs. Media Prima 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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