Correlation Between Star Media and IHH Healthcare
Can any of the company-specific risk be diversified away by investing in both Star Media and IHH 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 Star Media and IHH Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Star Media Group and IHH Healthcare Bhd, you can compare the effects of market volatilities on Star Media and IHH 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 Star Media with a short position of IHH Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Star Media and IHH Healthcare.
Diversification Opportunities for Star Media and IHH Healthcare
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Star and IHH is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Star Media Group and IHH Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHH Healthcare Bhd and Star Media 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 Star Media Group are associated (or correlated) with IHH Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHH Healthcare Bhd has no effect on the direction of Star Media i.e., Star Media and IHH Healthcare go up and down completely randomly.
Pair Corralation between Star Media and IHH Healthcare
Assuming the 90 days trading horizon Star Media Group is expected to under-perform the IHH Healthcare. In addition to that, Star Media is 1.55 times more volatile than IHH Healthcare Bhd. It trades about -0.04 of its total potential returns per unit of risk. IHH Healthcare Bhd is currently generating about -0.01 per unit of volatility. If you would invest 726.00 in IHH Healthcare Bhd on October 30, 2024 and sell it today you would lose (3.00) from holding IHH Healthcare Bhd or give up 0.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Star Media Group vs. IHH Healthcare Bhd
Performance |
| Timeline |
| Star Media Group |
| IHH Healthcare Bhd |
Star Media and IHH Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Star Media and IHH Healthcare
The main advantage of trading using opposite Star Media and IHH Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Star Media position performs unexpectedly, IHH 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 IHH Healthcare will offset losses from the drop in IHH Healthcare's long position.| Star Media vs. Dnonce Tech Bhd | Star Media vs. SFP Tech Holdings | Star Media vs. PMB Technology Bhd | Star Media vs. Aurelius Technologies Bhd |
| IHH Healthcare vs. Homeritz Bhd | IHH Healthcare vs. Computer Forms Bhd | IHH Healthcare vs. Press Metal Bhd | IHH Healthcare vs. Sunzen Biotech 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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