Correlation Between Rubberex M and Al Aqar
Can any of the company-specific risk be diversified away by investing in both Rubberex M and Al Aqar 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 Rubberex M and Al Aqar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rubberex M and Al Aqar Healthcare, you can compare the effects of market volatilities on Rubberex M and Al Aqar 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 Rubberex M with a short position of Al Aqar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rubberex M and Al Aqar.
Diversification Opportunities for Rubberex M and Al Aqar
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Rubberex and 5116 is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Rubberex M and Al Aqar Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Al Aqar Healthcare and Rubberex M 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 Rubberex M are associated (or correlated) with Al Aqar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Al Aqar Healthcare has no effect on the direction of Rubberex M i.e., Rubberex M and Al Aqar go up and down completely randomly.
Pair Corralation between Rubberex M and Al Aqar
Assuming the 90 days trading horizon Rubberex M is expected to under-perform the Al Aqar. In addition to that, Rubberex M is 3.86 times more volatile than Al Aqar Healthcare. It trades about -0.02 of its total potential returns per unit of risk. Al Aqar Healthcare is currently generating about 0.01 per unit of volatility. If you would invest 127.00 in Al Aqar Healthcare on November 3, 2024 and sell it today you would earn a total of 2.00 from holding Al Aqar Healthcare or generate 1.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rubberex M vs. Al Aqar Healthcare
Performance |
| Timeline |
| Rubberex M |
| Al Aqar Healthcare |
Rubberex M and Al Aqar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rubberex M and Al Aqar
The main advantage of trading using opposite Rubberex M and Al Aqar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rubberex M position performs unexpectedly, Al Aqar 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 Al Aqar will offset losses from the drop in Al Aqar's long position.| Rubberex M vs. Binasat Communications Bhd | Rubberex M vs. Computer Forms Bhd | Rubberex M vs. Choo Bee Metal | Rubberex M vs. Press Metal Bhd |
| Al Aqar vs. Star Media Group | Al Aqar vs. Daya Materials Bhd | Al Aqar vs. YTL Hospitality REIT | Al Aqar vs. Silver Ridge Holdings |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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