Correlation Between IHH Healthcare and Paltalk

Can any of the company-specific risk be diversified away by investing in both IHH Healthcare and Paltalk 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 Paltalk 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 Paltalk, you can compare the effects of market volatilities on IHH Healthcare and Paltalk 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 Paltalk. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHH Healthcare and Paltalk.

Diversification Opportunities for IHH Healthcare and Paltalk

0.0

Correlation Coefficient

IHH Healthcare  Paltalk

Pay attention - limited upside

The 3 months correlation between IHH and Paltalk is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IHH Healthcare Berhad and Paltalk in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Paltalk 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 Paltalk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Paltalk has no effect on the direction of IHH Healthcare i.e., IHH Healthcare and Paltalk go up and down completely randomly.

Pair Corralation between IHH Healthcare and Paltalk

If you would invest  119.00  in IHH Healthcare Berhad on September 25, 2024 and sell it today you would earn a total of  0.00  from holding IHH Healthcare Berhad or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	4.76%
Values	Daily Returns

IHH Healthcare Berhad  vs.  Paltalk

IHH Healthcare Berhad

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days IHH Healthcare Berhad has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, IHH Healthcare is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Paltalk

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Paltalk has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's essential indicators remain comparatively stable which may send shares a bit higher in January 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with IHH Healthcare and Paltalk

The main advantage of trading using opposite IHH Healthcare and Paltalk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHH Healthcare position performs unexpectedly, Paltalk 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 Paltalk will offset losses from the drop in Paltalk's long position.

The idea behind IHH Healthcare Berhad and Paltalk 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.

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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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.