Correlation Between Astar and Apex Healthcare
Can any of the company-specific risk be diversified away by investing in both Astar and Apex 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 Astar and Apex Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astar and Apex Healthcare Bhd, you can compare the effects of market volatilities on Astar and Apex 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 Astar with a short position of Apex Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astar and Apex Healthcare.
Diversification Opportunities for Astar and Apex Healthcare
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Astar and Apex is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Astar and Apex Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Healthcare Bhd and Astar 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 Astar are associated (or correlated) with Apex Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Healthcare Bhd has no effect on the direction of Astar i.e., Astar and Apex Healthcare go up and down completely randomly.
Pair Corralation between Astar and Apex Healthcare
Assuming the 90 days trading horizon Astar is expected to generate 5.66 times more return on investment than Apex Healthcare. However, Astar is 5.66 times more volatile than Apex Healthcare Bhd. It trades about 0.05 of its potential returns per unit of risk. Apex Healthcare Bhd is currently generating about -0.17 per unit of risk. If you would invest 6.20 in Astar on October 20, 2024 and sell it today you would earn a total of 0.16 from holding Astar or generate 2.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Astar vs. Apex Healthcare Bhd
Performance |
| Timeline |
| Astar |
| Apex Healthcare Bhd |
Astar and Apex Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astar and Apex Healthcare
The main advantage of trading using opposite Astar and Apex Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astar position performs unexpectedly, Apex 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 Apex Healthcare will offset losses from the drop in Apex Healthcare's long position.The idea behind Astar and Apex Healthcare Bhd pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Apex Healthcare vs. Duopharma Biotech Bhd | Apex Healthcare vs. MSCM Holdings Bhd | Apex Healthcare vs. Uwc Bhd | Apex 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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