Correlation Between Mercury Industries and DC HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Mercury Industries 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 Mercury Industries and DC HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mercury Industries Bhd and DC HEALTHCARE HOLDINGS, you can compare the effects of market volatilities on Mercury Industries 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 Mercury Industries with a short position of DC HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mercury Industries and DC HEALTHCARE.
Diversification Opportunities for Mercury Industries and DC HEALTHCARE
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Mercury and 0283 is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Mercury Industries 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 Mercury Industries 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 Mercury Industries 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 Mercury Industries i.e., Mercury Industries and DC HEALTHCARE go up and down completely randomly.
Pair Corralation between Mercury Industries and DC HEALTHCARE
Assuming the 90 days trading horizon Mercury Industries Bhd is expected to under-perform the DC HEALTHCARE. But the stock apears to be less risky and, when comparing its historical volatility, Mercury Industries Bhd is 1.38 times less risky than DC HEALTHCARE. The stock trades about -0.17 of its potential returns per unit of risk. The DC HEALTHCARE HOLDINGS is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 16.00 in DC HEALTHCARE HOLDINGS on August 27, 2024 and sell it today you would earn a total of 0.00 from holding DC HEALTHCARE HOLDINGS or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mercury Industries Bhd vs. DC HEALTHCARE HOLDINGS
Performance |
| Timeline |
| Mercury Industries Bhd |
| DC HEALTHCARE HOLDINGS |
Mercury Industries and DC HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mercury Industries and DC HEALTHCARE
The main advantage of trading using opposite Mercury Industries and DC HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mercury Industries 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.| Mercury Industries vs. Senheng New Retail | Mercury Industries vs. Alliance Financial Group | Mercury Industries vs. Kluang Rubber | Mercury Industries vs. Apex Healthcare Bhd |
| DC HEALTHCARE vs. Malayan Banking Bhd | DC HEALTHCARE vs. Public Bank Bhd | DC HEALTHCARE vs. Petronas Chemicals Group | DC HEALTHCARE vs. Tenaga Nasional 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |