Correlation Between IHH Healthcare and Insas Bhd
Can any of the company-specific risk be diversified away by investing in both IHH Healthcare and Insas Bhd 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 IHH Healthcare and Insas Bhd into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHH Healthcare Bhd and Insas Bhd, you can compare the effects of market volatilities on IHH Healthcare and Insas Bhd 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 IHH Healthcare with a short position of Insas Bhd. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHH Healthcare and Insas Bhd.
Diversification Opportunities for IHH Healthcare and Insas Bhd
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between IHH and Insas is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding IHH Healthcare Bhd and Insas Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Insas Bhd and IHH Healthcare 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 IHH Healthcare Bhd are associated (or correlated) with Insas Bhd. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Insas Bhd has no effect on the direction of IHH Healthcare i.e., IHH Healthcare and Insas Bhd go up and down completely randomly.
Pair Corralation between IHH Healthcare and Insas Bhd
Assuming the 90 days trading horizon IHH Healthcare Bhd is expected to generate 0.54 times more return on investment than Insas Bhd. However, IHH Healthcare Bhd is 1.87 times less risky than Insas Bhd. It trades about 0.12 of its potential returns per unit of risk. Insas Bhd is currently generating about -0.03 per unit of risk. If you would invest 626.00 in IHH Healthcare Bhd on September 3, 2024 and sell it today you would earn a total of 100.00 from holding IHH Healthcare Bhd or generate 15.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IHH Healthcare Bhd vs. Insas Bhd
Performance |
| Timeline |
| IHH Healthcare Bhd |
| Insas Bhd |
IHH Healthcare and Insas Bhd Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHH Healthcare and Insas Bhd
The main advantage of trading using opposite IHH Healthcare and Insas Bhd positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHH Healthcare position performs unexpectedly, Insas Bhd 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 Insas Bhd will offset losses from the drop in Insas Bhd's long position.| IHH Healthcare vs. Binasat Communications Bhd | IHH Healthcare vs. Aeon Credit Service | IHH Healthcare vs. KPJ Healthcare Bhd | IHH Healthcare vs. Media Prima Bhd |
| Insas Bhd vs. Farm Price Holdings | Insas Bhd vs. MyTech Group Bhd | Insas Bhd vs. Star Media Group | Insas Bhd vs. Magni Tech Industries |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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