Correlation Between Apex Healthcare and Berjaya Food
Can any of the company-specific risk be diversified away by investing in both Apex Healthcare and Berjaya Food 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 Berjaya Food 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 Berjaya Food Bhd, you can compare the effects of market volatilities on Apex Healthcare and Berjaya Food 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 Berjaya Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Healthcare and Berjaya Food.
Diversification Opportunities for Apex Healthcare and Berjaya Food
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Apex and Berjaya is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Apex Healthcare Bhd and Berjaya Food Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berjaya Food Bhd 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 Berjaya Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berjaya Food Bhd has no effect on the direction of Apex Healthcare i.e., Apex Healthcare and Berjaya Food go up and down completely randomly.
Pair Corralation between Apex Healthcare and Berjaya Food
Assuming the 90 days trading horizon Apex Healthcare Bhd is expected to generate 0.22 times more return on investment than Berjaya Food. However, Apex Healthcare Bhd is 4.59 times less risky than Berjaya Food. It trades about -0.34 of its potential returns per unit of risk. Berjaya Food Bhd is currently generating about -0.27 per unit of risk. If you would invest 268.00 in Apex Healthcare Bhd on September 2, 2024 and sell it today you would lose (20.00) from holding Apex Healthcare Bhd or give up 7.46% 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. Berjaya Food Bhd
Performance |
| Timeline |
| Apex Healthcare Bhd |
| Berjaya Food Bhd |
Apex Healthcare and Berjaya Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Healthcare and Berjaya Food
The main advantage of trading using opposite Apex Healthcare and Berjaya Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Healthcare position performs unexpectedly, Berjaya Food 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 Berjaya Food will offset losses from the drop in Berjaya Food'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 |
| Berjaya Food vs. Duopharma Biotech Bhd | Berjaya Food vs. Choo Bee Metal | Berjaya Food vs. Aeon Credit Service | Berjaya Food vs. Supercomnet Technologies 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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