Correlation Between Apex Healthcare and Kluang Rubber
Can any of the company-specific risk be diversified away by investing in both Apex Healthcare and Kluang Rubber 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 Kluang Rubber 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 Kluang Rubber, you can compare the effects of market volatilities on Apex Healthcare and Kluang Rubber 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 Kluang Rubber. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Healthcare and Kluang Rubber.
Diversification Opportunities for Apex Healthcare and Kluang Rubber
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Apex and Kluang is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Apex Healthcare Bhd and Kluang Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kluang Rubber 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 Kluang Rubber. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kluang Rubber has no effect on the direction of Apex Healthcare i.e., Apex Healthcare and Kluang Rubber go up and down completely randomly.
Pair Corralation between Apex Healthcare and Kluang Rubber
Assuming the 90 days trading horizon Apex Healthcare Bhd is expected to under-perform the Kluang Rubber. In addition to that, Apex Healthcare is 2.11 times more volatile than Kluang Rubber. It trades about -0.19 of its total potential returns per unit of risk. Kluang Rubber is currently generating about -0.02 per unit of volatility. If you would invest 570.00 in Kluang Rubber on October 30, 2024 and sell it today you would lose (1.00) from holding Kluang Rubber or give up 0.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apex Healthcare Bhd vs. Kluang Rubber
Performance |
| Timeline |
| Apex Healthcare Bhd |
| Kluang Rubber |
Apex Healthcare and Kluang Rubber Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Healthcare and Kluang Rubber
The main advantage of trading using opposite Apex Healthcare and Kluang Rubber positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Healthcare position performs unexpectedly, Kluang Rubber 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 Kluang Rubber will offset losses from the drop in Kluang Rubber's long position.| Apex Healthcare vs. Cloudpoint Technology Berhad | Apex Healthcare vs. Computer Forms Bhd | Apex Healthcare vs. DC HEALTHCARE HOLDINGS | Apex Healthcare vs. Choo Bee Metal |
| Kluang Rubber vs. Mercury Industries Bhd | Kluang Rubber vs. Binasat Communications Bhd | Kluang Rubber vs. Sapura Industrial Bhd | Kluang Rubber vs. ECM Libra Financial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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