Correlation Between IHH Healthcare and Awanbiru Technology
Can any of the company-specific risk be diversified away by investing in both IHH Healthcare and Awanbiru Technology 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 Awanbiru Technology 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 Awanbiru Technology Bhd, you can compare the effects of market volatilities on IHH Healthcare and Awanbiru Technology 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 Awanbiru Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHH Healthcare and Awanbiru Technology.
Diversification Opportunities for IHH Healthcare and Awanbiru Technology
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between IHH and Awanbiru is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding IHH Healthcare Bhd and Awanbiru Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awanbiru Technology 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 Awanbiru Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awanbiru Technology Bhd has no effect on the direction of IHH Healthcare i.e., IHH Healthcare and Awanbiru Technology go up and down completely randomly.
Pair Corralation between IHH Healthcare and Awanbiru Technology
Assuming the 90 days trading horizon IHH Healthcare Bhd is expected to generate 0.31 times more return on investment than Awanbiru Technology. However, IHH Healthcare Bhd is 3.19 times less risky than Awanbiru Technology. It trades about 0.12 of its potential returns per unit of risk. Awanbiru Technology Bhd is currently generating about 0.01 per unit of risk. If you would invest 634.00 in IHH Healthcare Bhd on November 2, 2024 and sell it today you would earn a total of 81.00 from holding IHH Healthcare Bhd or generate 12.78% 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. Awanbiru Technology Bhd
Performance |
| Timeline |
| IHH Healthcare Bhd |
| Awanbiru Technology Bhd |
IHH Healthcare and Awanbiru Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHH Healthcare and Awanbiru Technology
The main advantage of trading using opposite IHH Healthcare and Awanbiru Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHH Healthcare position performs unexpectedly, Awanbiru Technology 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 Awanbiru Technology will offset losses from the drop in Awanbiru Technology's long position.| IHH Healthcare vs. Cloudpoint Technology Berhad | IHH Healthcare vs. TAS Offshore Bhd | IHH Healthcare vs. Icon Offshore Bhd | IHH Healthcare vs. Sports Toto Berhad |
| Awanbiru Technology vs. Datasonic Group Bhd | Awanbiru Technology vs. Dataprep Holdings Bhd | Awanbiru Technology vs. Systech Bhd | Awanbiru Technology vs. TechnoDex 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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