Correlation Between IHH Healthcare and AMCON Distributing
Can any of the company-specific risk be diversified away by investing in both IHH Healthcare and AMCON Distributing 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 IHH Healthcare and AMCON Distributing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHH Healthcare Berhad and AMCON Distributing, you can compare the effects of market volatilities on IHH Healthcare and AMCON Distributing 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 IHH Healthcare with a short position of AMCON Distributing. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHH Healthcare and AMCON Distributing.
Diversification Opportunities for IHH Healthcare and AMCON Distributing
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IHH and AMCON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IHH Healthcare Berhad and AMCON Distributing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMCON Distributing and IHH Healthcare 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 IHH Healthcare Berhad are associated (or correlated) with AMCON Distributing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMCON Distributing has no effect on the direction of IHH Healthcare i.e., IHH Healthcare and AMCON Distributing go up and down completely randomly.
Pair Corralation between IHH Healthcare and AMCON Distributing
If you would invest 13,590 in AMCON Distributing on September 4, 2024 and sell it today you would lose (183.00) from holding AMCON Distributing or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 2.44% |
| Values | Daily Returns |
IHH Healthcare Berhad vs. AMCON Distributing
Performance |
| Timeline |
| IHH Healthcare Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| AMCON Distributing |
IHH Healthcare and AMCON Distributing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHH Healthcare and AMCON Distributing
The main advantage of trading using opposite IHH Healthcare and AMCON Distributing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHH Healthcare position performs unexpectedly, AMCON Distributing 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 AMCON Distributing will offset losses from the drop in AMCON Distributing's long position.| IHH Healthcare vs. Tower Semiconductor | IHH Healthcare vs. Entegris | IHH Healthcare vs. Analog Devices | IHH Healthcare vs. Elmos Semiconductor SE |
| AMCON Distributing vs. The Chefs Warehouse | AMCON Distributing vs. G Willi Food International | AMCON Distributing vs. SpartanNash Co | AMCON Distributing vs. Calavo Growers |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |