Correlation Between IHH Healthcare and Bina Darulaman
Can any of the company-specific risk be diversified away by investing in both IHH Healthcare and Bina Darulaman 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 Bina Darulaman 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 Bina Darulaman Bhd, you can compare the effects of market volatilities on IHH Healthcare and Bina Darulaman 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 Bina Darulaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHH Healthcare and Bina Darulaman.
Diversification Opportunities for IHH Healthcare and Bina Darulaman
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IHH and Bina is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding IHH Healthcare Bhd and Bina Darulaman Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bina Darulaman 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 Bina Darulaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bina Darulaman Bhd has no effect on the direction of IHH Healthcare i.e., IHH Healthcare and Bina Darulaman go up and down completely randomly.
Pair Corralation between IHH Healthcare and Bina Darulaman
Assuming the 90 days trading horizon IHH Healthcare Bhd is expected to under-perform the Bina Darulaman. But the stock apears to be less risky and, when comparing its historical volatility, IHH Healthcare Bhd is 2.21 times less risky than Bina Darulaman. The stock trades about -0.01 of its potential returns per unit of risk. The Bina Darulaman Bhd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Bina Darulaman Bhd on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Bina Darulaman Bhd or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
IHH Healthcare Bhd vs. Bina Darulaman Bhd
Performance |
| Timeline |
| IHH Healthcare Bhd |
| Bina Darulaman Bhd |
IHH Healthcare and Bina Darulaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHH Healthcare and Bina Darulaman
The main advantage of trading using opposite IHH Healthcare and Bina Darulaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHH Healthcare position performs unexpectedly, Bina Darulaman 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 Bina Darulaman will offset losses from the drop in Bina Darulaman's long position.| IHH Healthcare vs. Cloudpoint Technology Berhad | IHH Healthcare vs. Duopharma Biotech Bhd | IHH Healthcare vs. Dataprep Holdings Bhd | IHH Healthcare vs. Uchi Technologies Bhd |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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