Correlation Between Raffles Medical and IHH Healthcare
Can any of the company-specific risk be diversified away by investing in both Raffles Medical and IHH 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 Raffles Medical and IHH Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raffles Medical Group and IHH Healthcare Berhad, you can compare the effects of market volatilities on Raffles Medical and IHH 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 Raffles Medical with a short position of IHH Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raffles Medical and IHH Healthcare.
Diversification Opportunities for Raffles Medical and IHH Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Raffles and IHH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Raffles Medical Group and IHH Healthcare Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHH Healthcare Berhad and Raffles Medical 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 Raffles Medical Group are associated (or correlated) with IHH Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHH Healthcare Berhad has no effect on the direction of Raffles Medical i.e., Raffles Medical and IHH Healthcare go up and down completely randomly.
Pair Corralation between Raffles Medical and IHH Healthcare
Assuming the 90 days horizon Raffles Medical Group is expected to under-perform the IHH Healthcare. In addition to that, Raffles Medical is 3.41 times more volatile than IHH Healthcare Berhad. It trades about -0.12 of its total potential returns per unit of risk. IHH Healthcare Berhad is currently generating about 0.03 per unit of volatility. If you would invest 116.00 in IHH Healthcare Berhad on September 4, 2024 and sell it today you would earn a total of 3.00 from holding IHH Healthcare Berhad or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 27.32% |
| Values | Daily Returns |
Raffles Medical Group vs. IHH Healthcare Berhad
Performance |
| Timeline |
| Raffles Medical Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IHH Healthcare Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Raffles Medical and IHH Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raffles Medical and IHH Healthcare
The main advantage of trading using opposite Raffles Medical and IHH Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raffles Medical position performs unexpectedly, IHH 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 IHH Healthcare will offset losses from the drop in IHH Healthcare's long position.| Raffles Medical vs. Pennant Group | Raffles Medical vs. Surgery Partners | Raffles Medical vs. The Ensign Group | Raffles Medical vs. Encompass Health Corp |
| IHH Healthcare vs. Tower Semiconductor | IHH Healthcare vs. Entegris | IHH Healthcare vs. Analog Devices | IHH Healthcare vs. Elmos Semiconductor SE |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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