Correlation Between Future Health and Bukit Jalil

Can any of the company-specific risk be diversified away by investing in both Future Health and Bukit Jalil 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 Future Health and Bukit Jalil into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Future Health Esg and Bukit Jalil Global, you can compare the effects of market volatilities on Future Health and Bukit Jalil 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 Future Health with a short position of Bukit Jalil. Check out your portfolio center. Please also check ongoing floating volatility patterns of Future Health and Bukit Jalil.

Diversification Opportunities for Future Health and Bukit Jalil

-0.01

Correlation Coefficient

Future Health  Bukit Jalil

Good diversification

The 3 months correlation between Future and Bukit is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Future Health Esg and Bukit Jalil Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bukit Jalil Global and Future Health 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 Future Health Esg are associated (or correlated) with Bukit Jalil. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bukit Jalil Global has no effect on the direction of Future Health i.e., Future Health and Bukit Jalil go up and down completely randomly.

Pair Corralation between Future Health and Bukit Jalil

Given the investment horizon of 90 days Future Health is expected to generate 32.07 times less return on investment than Bukit Jalil. But when comparing it to its historical volatility, Future Health Esg is 20.24 times less risky than Bukit Jalil. It trades about 0.03 of its potential returns per unit of risk. Bukit Jalil Global is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  17.00  in Bukit Jalil Global on September 29, 2024 and sell it today you would lose (7.00) from holding Bukit Jalil Global or give up 41.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	88.24%
Values	Daily Returns

Future Health Esg  vs.  Bukit Jalil Global

Future Health Esg

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Future Health Esg has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable essential indicators, Future Health is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Bukit Jalil Global

Risk-Adjusted Performance

3 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Bukit Jalil Global are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively unsteady basic indicators, Bukit Jalil reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Future Health and Bukit Jalil

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

The idea behind Future Health Esg and Bukit Jalil Global 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..