Correlation Between Apex Healthcare and Senheng New
Can any of the company-specific risk be diversified away by investing in both Apex Healthcare and Senheng New 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 Senheng New 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 Senheng New Retail, you can compare the effects of market volatilities on Apex Healthcare and Senheng New 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 Senheng New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apex Healthcare and Senheng New.
Diversification Opportunities for Apex Healthcare and Senheng New
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Apex and Senheng is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Apex Healthcare Bhd and Senheng New Retail in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Senheng New Retail 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 Senheng New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Senheng New Retail has no effect on the direction of Apex Healthcare i.e., Apex Healthcare and Senheng New go up and down completely randomly.
Pair Corralation between Apex Healthcare and Senheng New
Assuming the 90 days trading horizon Apex Healthcare Bhd is expected to generate 0.29 times more return on investment than Senheng New. However, Apex Healthcare Bhd is 3.41 times less risky than Senheng New. It trades about -0.17 of its potential returns per unit of risk. Senheng New Retail is currently generating about -0.1 per unit of risk. If you would invest 246.00 in Apex Healthcare Bhd on October 20, 2024 and sell it today you would lose (8.00) from holding Apex Healthcare Bhd or give up 3.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Apex Healthcare Bhd vs. Senheng New Retail
Performance |
| Timeline |
| Apex Healthcare Bhd |
| Senheng New Retail |
Apex Healthcare and Senheng New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apex Healthcare and Senheng New
The main advantage of trading using opposite Apex Healthcare and Senheng New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apex Healthcare position performs unexpectedly, Senheng New 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 Senheng New will offset losses from the drop in Senheng New's long position.| Apex Healthcare vs. Duopharma Biotech Bhd | Apex Healthcare vs. MSCM Holdings Bhd | Apex Healthcare vs. Uwc Bhd | Apex Healthcare vs. FARM FRESH BERHAD |
| Senheng New vs. DC HEALTHCARE HOLDINGS | Senheng New vs. Choo Bee Metal | Senheng New vs. Awanbiru Technology Bhd | Senheng New vs. Eonmetall Group 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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