Correlation Between Choo Bee and DC HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Choo Bee and DC 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 Choo Bee and DC HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Choo Bee Metal and DC HEALTHCARE HOLDINGS, you can compare the effects of market volatilities on Choo Bee and DC 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 Choo Bee with a short position of DC HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Choo Bee and DC HEALTHCARE.
Diversification Opportunities for Choo Bee and DC HEALTHCARE
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Choo and 0283 is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Choo Bee Metal and DC HEALTHCARE HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DC HEALTHCARE HOLDINGS and Choo Bee 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 Choo Bee Metal are associated (or correlated) with DC HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DC HEALTHCARE HOLDINGS has no effect on the direction of Choo Bee i.e., Choo Bee and DC HEALTHCARE go up and down completely randomly.
Pair Corralation between Choo Bee and DC HEALTHCARE
Assuming the 90 days trading horizon Choo Bee Metal is expected to under-perform the DC HEALTHCARE. But the stock apears to be less risky and, when comparing its historical volatility, Choo Bee Metal is 1.64 times less risky than DC HEALTHCARE. The stock trades about -0.06 of its potential returns per unit of risk. The DC HEALTHCARE HOLDINGS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 17.00 in DC HEALTHCARE HOLDINGS on November 2, 2024 and sell it today you would earn a total of 0.00 from holding DC HEALTHCARE HOLDINGS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Choo Bee Metal vs. DC HEALTHCARE HOLDINGS
Performance |
| Timeline |
| Choo Bee Metal |
| DC HEALTHCARE HOLDINGS |
Choo Bee and DC HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Choo Bee and DC HEALTHCARE
The main advantage of trading using opposite Choo Bee and DC HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Choo Bee position performs unexpectedly, DC 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 DC HEALTHCARE will offset losses from the drop in DC HEALTHCARE's long position.| Choo Bee vs. Binasat Communications Bhd | Choo Bee vs. Cosmos Technology International | Choo Bee vs. YX Precious Metals | Choo Bee vs. PMB Technology Bhd |
| DC HEALTHCARE vs. Malayan Banking Bhd | DC HEALTHCARE vs. Public Bank Bhd | DC HEALTHCARE vs. Petronas Chemicals Group | DC HEALTHCARE vs. Tenaga Nasional 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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