Correlation Between IHH Healthcare and Rubberex M
Can any of the company-specific risk be diversified away by investing in both IHH Healthcare and Rubberex M 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 Rubberex M 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 Rubberex M, you can compare the effects of market volatilities on IHH Healthcare and Rubberex M 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 Rubberex M. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHH Healthcare and Rubberex M.
Diversification Opportunities for IHH Healthcare and Rubberex M
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IHH and Rubberex is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding IHH Healthcare Bhd and Rubberex M in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rubberex M 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 Rubberex M. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rubberex M has no effect on the direction of IHH Healthcare i.e., IHH Healthcare and Rubberex M go up and down completely randomly.
Pair Corralation between IHH Healthcare and Rubberex M
Assuming the 90 days trading horizon IHH Healthcare Bhd is expected to generate 0.22 times more return on investment than Rubberex M. However, IHH Healthcare Bhd is 4.49 times less risky than Rubberex M. It trades about 0.07 of its potential returns per unit of risk. Rubberex M is currently generating about -0.02 per unit of risk. If you would invest 567.00 in IHH Healthcare Bhd on August 27, 2024 and sell it today you would earn a total of 152.00 from holding IHH Healthcare Bhd or generate 26.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
IHH Healthcare Bhd vs. Rubberex M
Performance |
| Timeline |
| IHH Healthcare Bhd |
| Rubberex M |
IHH Healthcare and Rubberex M Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHH Healthcare and Rubberex M
The main advantage of trading using opposite IHH Healthcare and Rubberex M positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHH Healthcare position performs unexpectedly, Rubberex M 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 Rubberex M will offset losses from the drop in Rubberex M's long position.| IHH Healthcare vs. Lyc Healthcare Bhd | IHH Healthcare vs. Digistar Bhd | IHH Healthcare vs. Minetech Resources Bhd | IHH Healthcare vs. OpenSys M Bhd |
| Rubberex M vs. Computer Forms Bhd | Rubberex M vs. Cloudpoint Technology Berhad | Rubberex M vs. Uchi Technologies Bhd | Rubberex M vs. Lotte Chemical Titan |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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