Correlation Between ATA IMS and DC HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both ATA IMS and DC 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 ATA IMS and DC HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATA IMS Bhd and DC HEALTHCARE HOLDINGS, you can compare the effects of market volatilities on ATA IMS and DC 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 ATA IMS with a short position of DC HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATA IMS and DC HEALTHCARE.
Diversification Opportunities for ATA IMS and DC HEALTHCARE
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between ATA and 0283 is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding ATA IMS Bhd and DC HEALTHCARE HOLDINGS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DC HEALTHCARE HOLDINGS and ATA IMS 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 ATA IMS Bhd are associated (or correlated) with DC HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DC HEALTHCARE HOLDINGS has no effect on the direction of ATA IMS i.e., ATA IMS and DC HEALTHCARE go up and down completely randomly.
Pair Corralation between ATA IMS and DC HEALTHCARE
Assuming the 90 days trading horizon ATA IMS Bhd is expected to under-perform the DC HEALTHCARE. In addition to that, ATA IMS is 1.04 times more volatile than DC HEALTHCARE HOLDINGS. It trades about -0.03 of its total potential returns per unit of risk. DC HEALTHCARE HOLDINGS is currently generating about 0.1 per unit of volatility. If you would invest 16.00 in DC HEALTHCARE HOLDINGS on August 30, 2024 and sell it today you would earn a total of 1.00 from holding DC HEALTHCARE HOLDINGS or generate 6.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
ATA IMS Bhd vs. DC HEALTHCARE HOLDINGS
Performance |
| Timeline |
| ATA IMS Bhd |
| DC HEALTHCARE HOLDINGS |
ATA IMS and DC HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATA IMS and DC HEALTHCARE
The main advantage of trading using opposite ATA IMS and DC HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATA IMS position performs unexpectedly, DC 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 DC HEALTHCARE will offset losses from the drop in DC HEALTHCARE's long position.| ATA IMS vs. DC HEALTHCARE HOLDINGS | ATA IMS vs. TAS Offshore Bhd | ATA IMS vs. Southern Steel Bhd | ATA IMS vs. Press Metal Bhd |
| DC HEALTHCARE vs. Eversafe Rubber Bhd | DC HEALTHCARE vs. Riverview Rubber Estates | DC HEALTHCARE vs. BP Plastics Holding | DC HEALTHCARE vs. FARM FRESH BERHAD |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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