Correlation Between Apex Healthcare and K One
Can any of the company-specific risk be diversified away by investing in both Apex Healthcare and K One 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 Apex Healthcare and K One into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apex Healthcare Bhd and K One Technology Bhd, you can compare the effects of market volatilities on Apex Healthcare and K One 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 Apex Healthcare with a short position of K One. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Healthcare and K One.
Diversification Opportunities for Apex Healthcare and K One
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apex and 0111 is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Apex Healthcare Bhd and K One Technology Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on K One Technology and Apex 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 Apex Healthcare Bhd are associated (or correlated) with K One. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of K One Technology has no effect on the direction of Apex Healthcare i.e., Apex Healthcare and K One go up and down completely randomly.
Pair Corralation between Apex Healthcare and K One
Assuming the 90 days trading horizon Apex Healthcare Bhd is expected to under-perform the K One. But the stock apears to be less risky and, when comparing its historical volatility, Apex Healthcare Bhd is 4.43 times less risky than K One. The stock trades about -0.03 of its potential returns per unit of risk. The K One Technology Bhd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 17.00 in K One Technology Bhd on November 3, 2024 and sell it today you would lose (1.00) from holding K One Technology Bhd or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apex Healthcare Bhd vs. K One Technology Bhd
Performance |
| Timeline |
| Apex Healthcare Bhd |
| K One Technology |
Apex Healthcare and K One Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Healthcare and K One
The main advantage of trading using opposite Apex Healthcare and K One positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Healthcare position performs unexpectedly, K One 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 K One will offset losses from the drop in K One's long position.| Apex Healthcare vs. Duopharma Biotech Bhd | Apex Healthcare vs. Digistar Bhd | Apex Healthcare vs. Minetech Resources Bhd | Apex Healthcare vs. OpenSys M Bhd |
| K One vs. Uchi Technologies Bhd | K One vs. Digistar Bhd | K One vs. Minetech Resources Bhd | K One vs. OpenSys M 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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