Correlation Between Awanbiru Technology and Lyc Healthcare
Can any of the company-specific risk be diversified away by investing in both Awanbiru Technology and Lyc 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 Awanbiru Technology and Lyc Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awanbiru Technology Bhd and Lyc Healthcare Bhd, you can compare the effects of market volatilities on Awanbiru Technology and Lyc 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 Awanbiru Technology with a short position of Lyc Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awanbiru Technology and Lyc Healthcare.
Diversification Opportunities for Awanbiru Technology and Lyc Healthcare
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Awanbiru and Lyc is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Awanbiru Technology Bhd and Lyc Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyc Healthcare Bhd and Awanbiru Technology 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 Awanbiru Technology Bhd are associated (or correlated) with Lyc Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyc Healthcare Bhd has no effect on the direction of Awanbiru Technology i.e., Awanbiru Technology and Lyc Healthcare go up and down completely randomly.
Pair Corralation between Awanbiru Technology and Lyc Healthcare
Assuming the 90 days trading horizon Awanbiru Technology Bhd is expected to generate 0.98 times more return on investment than Lyc Healthcare. However, Awanbiru Technology Bhd is 1.02 times less risky than Lyc Healthcare. It trades about 0.05 of its potential returns per unit of risk. Lyc Healthcare Bhd is currently generating about -0.03 per unit of risk. If you would invest 35.00 in Awanbiru Technology Bhd on October 16, 2024 and sell it today you would earn a total of 1.00 from holding Awanbiru Technology Bhd or generate 2.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awanbiru Technology Bhd vs. Lyc Healthcare Bhd
Performance |
| Timeline |
| Awanbiru Technology Bhd |
| Lyc Healthcare Bhd |
Awanbiru Technology and Lyc Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awanbiru Technology and Lyc Healthcare
The main advantage of trading using opposite Awanbiru Technology and Lyc Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awanbiru Technology position performs unexpectedly, Lyc 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 Lyc Healthcare will offset losses from the drop in Lyc Healthcare's long position.| Awanbiru Technology vs. Datasonic Group Bhd | Awanbiru Technology vs. Dataprep Holdings Bhd | Awanbiru Technology vs. Systech Bhd | Awanbiru Technology vs. TechnoDex Bhd |
| Lyc Healthcare vs. Al Aqar Healthcare | Lyc Healthcare vs. Awanbiru Technology Bhd | Lyc Healthcare vs. Shangri La Hotels | Lyc Healthcare vs. KPJ Healthcare 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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