Correlation Between Apex Healthcare and CSC Steel
Can any of the company-specific risk be diversified away by investing in both Apex Healthcare and CSC Steel 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 CSC Steel 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 CSC Steel Holdings, you can compare the effects of market volatilities on Apex Healthcare and CSC Steel 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 CSC Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Healthcare and CSC Steel.
Diversification Opportunities for Apex Healthcare and CSC Steel
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Apex and CSC is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Apex Healthcare Bhd and CSC Steel Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CSC Steel 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 CSC Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CSC Steel Holdings has no effect on the direction of Apex Healthcare i.e., Apex Healthcare and CSC Steel go up and down completely randomly.
Pair Corralation between Apex Healthcare and CSC Steel
Assuming the 90 days trading horizon Apex Healthcare Bhd is expected to under-perform the CSC Steel. But the stock apears to be less risky and, when comparing its historical volatility, Apex Healthcare Bhd is 1.64 times less risky than CSC Steel. The stock trades about -0.31 of its potential returns per unit of risk. The CSC Steel Holdings is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 118.00 in CSC Steel Holdings on August 27, 2024 and sell it today you would earn a total of 1.00 from holding CSC Steel Holdings or generate 0.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apex Healthcare Bhd vs. CSC Steel Holdings
Performance |
| Timeline |
| Apex Healthcare Bhd |
| CSC Steel Holdings |
Apex Healthcare and CSC Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Healthcare and CSC Steel
The main advantage of trading using opposite Apex Healthcare and CSC Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Healthcare position performs unexpectedly, CSC Steel 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 CSC Steel will offset losses from the drop in CSC Steel'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 |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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