Correlation Between Awanbiru Technology and IHH Healthcare
Can any of the company-specific risk be diversified away by investing in both Awanbiru Technology 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 Awanbiru Technology and IHH 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 IHH Healthcare Bhd, you can compare the effects of market volatilities on Awanbiru Technology 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 Awanbiru Technology with a short position of IHH Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awanbiru Technology and IHH Healthcare.
Diversification Opportunities for Awanbiru Technology and IHH Healthcare
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Awanbiru and IHH is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Awanbiru Technology Bhd 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 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 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 Awanbiru Technology i.e., Awanbiru Technology and IHH Healthcare go up and down completely randomly.
Pair Corralation between Awanbiru Technology and IHH Healthcare
Assuming the 90 days trading horizon Awanbiru Technology Bhd is expected to generate 6.55 times more return on investment than IHH Healthcare. However, Awanbiru Technology is 6.55 times more volatile than IHH Healthcare Bhd. It trades about 0.02 of its potential returns per unit of risk. IHH Healthcare Bhd is currently generating about 0.06 per unit of risk. If you would invest 45.00 in Awanbiru Technology Bhd on August 28, 2024 and sell it today you would lose (14.00) from holding Awanbiru Technology Bhd or give up 31.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awanbiru Technology Bhd vs. IHH Healthcare Bhd
Performance |
| Timeline |
| Awanbiru Technology Bhd |
| IHH Healthcare Bhd |
Awanbiru Technology and IHH Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awanbiru Technology and IHH Healthcare
The main advantage of trading using opposite Awanbiru Technology and IHH Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awanbiru Technology 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.| Awanbiru Technology vs. Kluang Rubber | Awanbiru Technology vs. Daya Materials Bhd | Awanbiru Technology vs. Press Metal Bhd | Awanbiru Technology vs. Kawan Food Bhd |
| IHH Healthcare vs. Digistar Bhd | IHH Healthcare vs. Minetech Resources Bhd | IHH Healthcare vs. OpenSys M Bhd | IHH Healthcare vs. Insas 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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