Correlation Between Apex Healthcare and CIMB Group
Can any of the company-specific risk be diversified away by investing in both Apex Healthcare and CIMB Group 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 CIMB Group 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 CIMB Group Holdings, you can compare the effects of market volatilities on Apex Healthcare and CIMB Group 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 CIMB Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Healthcare and CIMB Group.
Diversification Opportunities for Apex Healthcare and CIMB Group
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Apex and CIMB is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Apex Healthcare Bhd and CIMB Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CIMB Group 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 CIMB Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CIMB Group Holdings has no effect on the direction of Apex Healthcare i.e., Apex Healthcare and CIMB Group go up and down completely randomly.
Pair Corralation between Apex Healthcare and CIMB Group
Assuming the 90 days trading horizon Apex Healthcare Bhd is expected to under-perform the CIMB Group. But the stock apears to be less risky and, when comparing its historical volatility, Apex Healthcare Bhd is 1.08 times less risky than CIMB Group. The stock trades about -0.15 of its potential returns per unit of risk. The CIMB Group Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 810.00 in CIMB Group Holdings on September 2, 2024 and sell it today you would earn a total of 15.00 from holding CIMB Group Holdings or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apex Healthcare Bhd vs. CIMB Group Holdings
Performance |
| Timeline |
| Apex Healthcare Bhd |
| CIMB Group Holdings |
Apex Healthcare and CIMB Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Healthcare and CIMB Group
The main advantage of trading using opposite Apex Healthcare and CIMB Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Healthcare position performs unexpectedly, CIMB Group 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 CIMB Group will offset losses from the drop in CIMB Group's long position.| Apex Healthcare vs. Digistar Bhd | Apex Healthcare vs. Minetech Resources Bhd | Apex Healthcare vs. Swift Haulage Bhd | Apex Healthcare vs. Bina Darulaman Bhd |
| CIMB Group vs. Malayan Banking Bhd | CIMB Group vs. Public Bank Bhd | CIMB Group vs. Petronas Chemicals Group | CIMB Group 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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