Correlation Between Sunway Construction and Lyc Healthcare
Can any of the company-specific risk be diversified away by investing in both Sunway Construction and Lyc Healthcare 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 Sunway Construction and Lyc Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunway Construction Group and Lyc Healthcare Bhd, you can compare the effects of market volatilities on Sunway Construction and Lyc Healthcare 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 Sunway Construction with a short position of Lyc Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunway Construction and Lyc Healthcare.
Diversification Opportunities for Sunway Construction and Lyc Healthcare
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sunway and Lyc is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Sunway Construction Group and Lyc Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyc Healthcare Bhd and Sunway Construction 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 Sunway Construction Group are associated (or correlated) with Lyc Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyc Healthcare Bhd has no effect on the direction of Sunway Construction i.e., Sunway Construction and Lyc Healthcare go up and down completely randomly.
Pair Corralation between Sunway Construction and Lyc Healthcare
Assuming the 90 days trading horizon Sunway Construction Group is expected to under-perform the Lyc Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Sunway Construction Group is 2.26 times less risky than Lyc Healthcare. The stock trades about -0.02 of its potential returns per unit of risk. The Lyc Healthcare Bhd is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 8.50 in Lyc Healthcare Bhd on August 30, 2024 and sell it today you would earn a total of 0.50 from holding Lyc Healthcare Bhd or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunway Construction Group vs. Lyc Healthcare Bhd
Performance |
| Timeline |
| Sunway Construction |
| Lyc Healthcare Bhd |
Sunway Construction and Lyc Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunway Construction and Lyc Healthcare
The main advantage of trading using opposite Sunway Construction and Lyc Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunway Construction position performs unexpectedly, Lyc Healthcare 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 Lyc Healthcare will offset losses from the drop in Lyc Healthcare's long position.| Sunway Construction vs. K One Technology Bhd | Sunway Construction vs. PMB Technology Bhd | Sunway Construction vs. Homeritz Bhd | Sunway Construction vs. Binasat Communications Bhd |
| Lyc Healthcare vs. Carlsberg Brewery Malaysia | Lyc Healthcare vs. Kluang Rubber | Lyc Healthcare vs. Daya Materials Bhd | Lyc Healthcare vs. DC HEALTHCARE 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Anywhere 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 | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |