Correlation Between Public Packages and Lyc Healthcare
Can any of the company-specific risk be diversified away by investing in both Public Packages and Lyc 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 Public Packages and Lyc Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Public Packages Holdings and Lyc Healthcare Bhd, you can compare the effects of market volatilities on Public Packages and Lyc 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 Public Packages with a short position of Lyc Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Public Packages and Lyc Healthcare.
Diversification Opportunities for Public Packages and Lyc Healthcare
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Public and Lyc is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Public Packages Holdings and Lyc Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lyc Healthcare Bhd and Public Packages 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 Public Packages Holdings are associated (or correlated) with Lyc Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lyc Healthcare Bhd has no effect on the direction of Public Packages i.e., Public Packages and Lyc Healthcare go up and down completely randomly.
Pair Corralation between Public Packages and Lyc Healthcare
Assuming the 90 days trading horizon Public Packages is expected to generate 35.5 times less return on investment than Lyc Healthcare. But when comparing it to its historical volatility, Public Packages Holdings is 3.48 times less risky than Lyc Healthcare. It trades about 0.01 of its potential returns per unit of risk. Lyc Healthcare Bhd is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 8.50 in Lyc Healthcare Bhd on August 26, 2024 and sell it today you would earn a total of 0.50 from holding Lyc Healthcare Bhd or generate 5.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Public Packages Holdings vs. Lyc Healthcare Bhd
Performance |
| Timeline |
| Public Packages Holdings |
| Lyc Healthcare Bhd |
Public Packages and Lyc Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Public Packages and Lyc Healthcare
The main advantage of trading using opposite Public Packages and Lyc Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Public Packages position performs unexpectedly, Lyc 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 Lyc Healthcare will offset losses from the drop in Lyc Healthcare's long position.| Public Packages vs. Malayan Banking Bhd | Public Packages vs. Public Bank Bhd | Public Packages vs. Petronas Chemicals Group | Public Packages vs. Tenaga Nasional Bhd |
| Lyc Healthcare vs. Digistar Bhd | Lyc Healthcare vs. Minetech Resources Bhd | Lyc Healthcare vs. OpenSys M Bhd | Lyc Healthcare vs. Insas 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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