Correlation Between Tenaga Nasional and Apex Healthcare
Can any of the company-specific risk be diversified away by investing in both Tenaga Nasional 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 Tenaga Nasional and Apex Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tenaga Nasional Bhd and Apex Healthcare Bhd, you can compare the effects of market volatilities on Tenaga Nasional 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 Tenaga Nasional with a short position of Apex Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tenaga Nasional and Apex Healthcare.
Diversification Opportunities for Tenaga Nasional and Apex Healthcare
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tenaga and Apex is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Tenaga Nasional Bhd 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 Tenaga Nasional 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 Tenaga Nasional Bhd 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 Tenaga Nasional i.e., Tenaga Nasional and Apex Healthcare go up and down completely randomly.
Pair Corralation between Tenaga Nasional and Apex Healthcare
Assuming the 90 days trading horizon Tenaga Nasional Bhd is expected to generate 1.24 times more return on investment than Apex Healthcare. However, Tenaga Nasional is 1.24 times more volatile than Apex Healthcare Bhd. It trades about -0.09 of its potential returns per unit of risk. Apex Healthcare Bhd is currently generating about -0.14 per unit of risk. If you would invest 1,457 in Tenaga Nasional Bhd on September 14, 2024 and sell it today you would lose (101.00) from holding Tenaga Nasional Bhd or give up 6.93% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Tenaga Nasional Bhd vs. Apex Healthcare Bhd
Performance |
Timeline |
Tenaga Nasional Bhd |
Apex Healthcare Bhd |
Tenaga Nasional and Apex Healthcare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tenaga Nasional and Apex Healthcare
The main advantage of trading using opposite Tenaga Nasional and Apex Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tenaga Nasional 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.Tenaga Nasional vs. K One Technology Bhd | Tenaga Nasional vs. FARM FRESH BERHAD | Tenaga Nasional vs. Tex Cycle Technology | Tenaga Nasional vs. Ho Hup Construction |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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