Correlation Between IHH Healthcare and Boustead Heavy
Can any of the company-specific risk be diversified away by investing in both IHH Healthcare and Boustead Heavy 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 Boustead Heavy 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 Boustead Heavy Industries, you can compare the effects of market volatilities on IHH Healthcare and Boustead Heavy 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 Boustead Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHH Healthcare and Boustead Heavy.
Diversification Opportunities for IHH Healthcare and Boustead Heavy
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between IHH and Boustead is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding IHH Healthcare Bhd and Boustead Heavy Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Boustead Heavy Industries 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 Boustead Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Boustead Heavy Industries has no effect on the direction of IHH Healthcare i.e., IHH Healthcare and Boustead Heavy go up and down completely randomly.
Pair Corralation between IHH Healthcare and Boustead Heavy
Assuming the 90 days trading horizon IHH Healthcare Bhd is expected to under-perform the Boustead Heavy. But the stock apears to be less risky and, when comparing its historical volatility, IHH Healthcare Bhd is 13.3 times less risky than Boustead Heavy. The stock trades about -0.02 of its potential returns per unit of risk. The Boustead Heavy Industries is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 45.00 in Boustead Heavy Industries on August 30, 2024 and sell it today you would lose (2.00) from holding Boustead Heavy Industries or give up 4.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
IHH Healthcare Bhd vs. Boustead Heavy Industries
Performance |
| Timeline |
| IHH Healthcare Bhd |
| Boustead Heavy Industries |
IHH Healthcare and Boustead Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHH Healthcare and Boustead Heavy
The main advantage of trading using opposite IHH Healthcare and Boustead Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHH Healthcare position performs unexpectedly, Boustead Heavy 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 Boustead Heavy will offset losses from the drop in Boustead Heavy's long position.| IHH Healthcare vs. KPJ Healthcare Bhd | IHH Healthcare vs. Minetech Resources Bhd | IHH Healthcare vs. Sunzen Biotech Bhd | IHH Healthcare vs. Hengyuan Refining |
| Boustead Heavy vs. British American Tobacco | Boustead Heavy vs. Kossan Rubber Industries | Boustead Heavy vs. YX Precious Metals | Boustead Heavy vs. Silver Ridge Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |