Correlation Between PMB Technology and IHH Healthcare
Can any of the company-specific risk be diversified away by investing in both PMB Technology and IHH Healthcare 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 PMB Technology and IHH Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PMB Technology Bhd and IHH Healthcare Bhd, you can compare the effects of market volatilities on PMB Technology and IHH Healthcare 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 PMB Technology with a short position of IHH Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of PMB Technology and IHH Healthcare.
Diversification Opportunities for PMB Technology and IHH Healthcare
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between PMB and IHH is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding PMB Technology Bhd and IHH Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHH Healthcare Bhd and PMB Technology 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 PMB Technology Bhd are associated (or correlated) with IHH Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHH Healthcare Bhd has no effect on the direction of PMB Technology i.e., PMB Technology and IHH Healthcare go up and down completely randomly.
Pair Corralation between PMB Technology and IHH Healthcare
Assuming the 90 days trading horizon PMB Technology Bhd is expected to under-perform the IHH Healthcare. In addition to that, PMB Technology is 2.8 times more volatile than IHH Healthcare Bhd. It trades about -0.05 of its total potential returns per unit of risk. IHH Healthcare Bhd is currently generating about 0.07 per unit of volatility. If you would invest 571.00 in IHH Healthcare Bhd on September 12, 2024 and sell it today you would earn a total of 173.00 from holding IHH Healthcare Bhd or generate 30.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PMB Technology Bhd vs. IHH Healthcare Bhd
Performance |
| Timeline |
| PMB Technology Bhd |
| IHH Healthcare Bhd |
PMB Technology and IHH Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PMB Technology and IHH Healthcare
The main advantage of trading using opposite PMB Technology and IHH Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PMB Technology position performs unexpectedly, IHH Healthcare 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 IHH Healthcare will offset losses from the drop in IHH Healthcare's long position.| PMB Technology vs. Press Metal Bhd | PMB Technology vs. Pantech Group Holdings | PMB Technology vs. CSC Steel Holdings | PMB Technology vs. Coraza Integrated Technology |
| IHH Healthcare vs. KPJ Healthcare Bhd | IHH Healthcare vs. Lyc Healthcare Bhd | IHH Healthcare vs. Al Aqar Healthcare | IHH Healthcare vs. PMB Technology 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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