Correlation Between Apex Healthcare and DC HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Apex Healthcare 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 Apex Healthcare and DC HEALTHCARE 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 DC HEALTHCARE HOLDINGS, you can compare the effects of market volatilities on Apex Healthcare 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 Apex Healthcare with a short position of DC HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Healthcare and DC HEALTHCARE.
Diversification Opportunities for Apex Healthcare and DC HEALTHCARE
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Apex and 0283 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Apex Healthcare Bhd 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 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 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 Apex Healthcare i.e., Apex Healthcare and DC HEALTHCARE go up and down completely randomly.
Pair Corralation between Apex Healthcare and DC HEALTHCARE
Assuming the 90 days trading horizon Apex Healthcare Bhd is expected to under-perform the DC HEALTHCARE. But the stock apears to be less risky and, when comparing its historical volatility, Apex Healthcare Bhd is 5.1 times less risky than DC HEALTHCARE. The stock trades about -0.31 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 16.00 in DC HEALTHCARE HOLDINGS on August 27, 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 Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apex Healthcare Bhd vs. DC HEALTHCARE HOLDINGS
Performance |
| Timeline |
| Apex Healthcare Bhd |
| DC HEALTHCARE HOLDINGS |
Apex Healthcare and DC HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Healthcare and DC HEALTHCARE
The main advantage of trading using opposite Apex Healthcare and DC HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Healthcare 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.| Apex Healthcare vs. Digistar Bhd | Apex Healthcare vs. Minetech Resources Bhd | Apex Healthcare vs. OpenSys M Bhd | Apex Healthcare vs. Insas 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |