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