Correlation Between Nexgram Holdings and IHH Healthcare
Can any of the company-specific risk be diversified away by investing in both Nexgram Holdings 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 Nexgram Holdings and IHH Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nexgram Holdings Bhd and IHH Healthcare Bhd, you can compare the effects of market volatilities on Nexgram Holdings 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 Nexgram Holdings with a short position of IHH Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nexgram Holdings and IHH Healthcare.
Diversification Opportunities for Nexgram Holdings and IHH Healthcare
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Nexgram and IHH is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Nexgram Holdings Bhd and IHH Healthcare Bhd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHH Healthcare Bhd and Nexgram Holdings 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 Nexgram Holdings Bhd 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 Bhd has no effect on the direction of Nexgram Holdings i.e., Nexgram Holdings and IHH Healthcare go up and down completely randomly.
Pair Corralation between Nexgram Holdings and IHH Healthcare
Assuming the 90 days trading horizon Nexgram Holdings Bhd is expected to generate 17.67 times more return on investment than IHH Healthcare. However, Nexgram Holdings is 17.67 times more volatile than IHH Healthcare Bhd. It trades about 0.08 of its potential returns per unit of risk. IHH Healthcare Bhd is currently generating about 0.0 per unit of risk. If you would invest 1.50 in Nexgram Holdings Bhd on September 24, 2024 and sell it today you would earn a total of 0.00 from holding Nexgram Holdings Bhd or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Nexgram Holdings Bhd vs. IHH Healthcare Bhd
Performance |
Timeline |
Nexgram Holdings Bhd |
IHH Healthcare Bhd |
Nexgram Holdings and IHH Healthcare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Nexgram Holdings and IHH Healthcare
The main advantage of trading using opposite Nexgram Holdings and IHH Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nexgram Holdings 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.Nexgram Holdings vs. M N C | Nexgram Holdings vs. Hartalega Holdings Bhd | Nexgram Holdings vs. Pentamaster Bhd | Nexgram Holdings vs. Sunway Construction Group |
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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 Global Correlations module to find global opportunities by holding instruments from different markets.
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