Correlation Between IHH Healthcare and Hil Industries
Can any of the company-specific risk be diversified away by investing in both IHH Healthcare and Hil Industries 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 Hil Industries 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 Hil Industries Bhd, you can compare the effects of market volatilities on IHH Healthcare and Hil Industries 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 Hil Industries. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHH Healthcare and Hil Industries.
Diversification Opportunities for IHH Healthcare and Hil Industries
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between IHH and Hil is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding IHH Healthcare Bhd and Hil Industries Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hil Industries 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 Hil Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hil Industries Bhd has no effect on the direction of IHH Healthcare i.e., IHH Healthcare and Hil Industries go up and down completely randomly.
Pair Corralation between IHH Healthcare and Hil Industries
Assuming the 90 days trading horizon IHH Healthcare Bhd is expected to generate 0.34 times more return on investment than Hil Industries. However, IHH Healthcare Bhd is 2.92 times less risky than Hil Industries. It trades about 0.09 of its potential returns per unit of risk. Hil Industries Bhd is currently generating about 0.0 per unit of risk. If you would invest 570.00 in IHH Healthcare Bhd on September 2, 2024 and sell it today you would earn a total of 156.00 from holding IHH Healthcare Bhd or generate 27.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 82.79% |
| Values | Daily Returns |
IHH Healthcare Bhd vs. Hil Industries Bhd
Performance |
| Timeline |
| IHH Healthcare Bhd |
| Hil Industries Bhd |
IHH Healthcare and Hil Industries Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHH Healthcare and Hil Industries
The main advantage of trading using opposite IHH Healthcare and Hil Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHH Healthcare position performs unexpectedly, Hil Industries 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 Hil Industries will offset losses from the drop in Hil Industries' 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 |
| Hil Industries vs. Awanbiru Technology Bhd | Hil Industries vs. Al Aqar Healthcare | Hil Industries vs. CPE Technology Berhad | Hil Industries vs. Public Bank 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |