Correlation Between KPJ Healthcare and Tex Cycle
Can any of the company-specific risk be diversified away by investing in both KPJ Healthcare and Tex Cycle 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 KPJ Healthcare and Tex Cycle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KPJ Healthcare Bhd and Tex Cycle Technology, you can compare the effects of market volatilities on KPJ Healthcare and Tex Cycle 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 KPJ Healthcare with a short position of Tex Cycle. Check out your portfolio center. Please also check ongoing floating volatility patterns of KPJ Healthcare and Tex Cycle.
Diversification Opportunities for KPJ Healthcare and Tex Cycle
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KPJ and Tex is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding KPJ Healthcare Bhd and Tex Cycle Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tex Cycle Technology and KPJ 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 KPJ Healthcare Bhd are associated (or correlated) with Tex Cycle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tex Cycle Technology has no effect on the direction of KPJ Healthcare i.e., KPJ Healthcare and Tex Cycle go up and down completely randomly.
Pair Corralation between KPJ Healthcare and Tex Cycle
Assuming the 90 days trading horizon KPJ Healthcare Bhd is expected to generate 1.54 times more return on investment than Tex Cycle. However, KPJ Healthcare is 1.54 times more volatile than Tex Cycle Technology. It trades about -0.1 of its potential returns per unit of risk. Tex Cycle Technology is currently generating about -0.26 per unit of risk. If you would invest 235.00 in KPJ Healthcare Bhd on October 25, 2024 and sell it today you would lose (8.00) from holding KPJ Healthcare Bhd or give up 3.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
KPJ Healthcare Bhd vs. Tex Cycle Technology
Performance |
| Timeline |
| KPJ Healthcare Bhd |
| Tex Cycle Technology |
KPJ Healthcare and Tex Cycle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KPJ Healthcare and Tex Cycle
The main advantage of trading using opposite KPJ Healthcare and Tex Cycle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KPJ Healthcare position performs unexpectedly, Tex Cycle 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 Tex Cycle will offset losses from the drop in Tex Cycle's long position.| KPJ Healthcare vs. Cloudpoint Technology Berhad | KPJ Healthcare vs. Lyc Healthcare Bhd | KPJ Healthcare vs. SSF Home Group | KPJ Healthcare vs. Tex Cycle Technology |
| Tex Cycle vs. Cloudpoint Technology Berhad | Tex Cycle vs. Computer Forms Bhd | Tex Cycle vs. Senheng New Retail | Tex Cycle vs. Rubberex M |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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