Correlation Between HCA Healthcare and Cairo Communication
Can any of the company-specific risk be diversified away by investing in both HCA Healthcare and Cairo Communication 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 HCA Healthcare and Cairo Communication into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HCA Healthcare and Cairo Communication SpA, you can compare the effects of market volatilities on HCA Healthcare and Cairo Communication 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 HCA Healthcare with a short position of Cairo Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of HCA Healthcare and Cairo Communication.
Diversification Opportunities for HCA Healthcare and Cairo Communication
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HCA and Cairo is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding HCA Healthcare and Cairo Communication SpA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cairo Communication SpA and HCA 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 HCA Healthcare are associated (or correlated) with Cairo Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cairo Communication SpA has no effect on the direction of HCA Healthcare i.e., HCA Healthcare and Cairo Communication go up and down completely randomly.
Pair Corralation between HCA Healthcare and Cairo Communication
Assuming the 90 days trading horizon HCA Healthcare is expected to under-perform the Cairo Communication. But the stock apears to be less risky and, when comparing its historical volatility, HCA Healthcare is 1.69 times less risky than Cairo Communication. The stock trades about -0.31 of its potential returns per unit of risk. The Cairo Communication SpA is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 229.00 in Cairo Communication SpA on September 24, 2024 and sell it today you would earn a total of 18.00 from holding Cairo Communication SpA or generate 7.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HCA Healthcare vs. Cairo Communication SpA
Performance |
| Timeline |
| HCA Healthcare |
| Cairo Communication SpA |
HCA Healthcare and Cairo Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HCA Healthcare and Cairo Communication
The main advantage of trading using opposite HCA Healthcare and Cairo Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCA Healthcare position performs unexpectedly, Cairo Communication 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 Cairo Communication will offset losses from the drop in Cairo Communication's long position.| HCA Healthcare vs. Uniper SE | HCA Healthcare vs. Mulberry Group PLC | HCA Healthcare vs. London Security Plc | HCA Healthcare vs. Triad Group PLC |
| Cairo Communication vs. Monster Beverage Corp | Cairo Communication vs. BW Offshore | Cairo Communication vs. Planet Fitness Cl | Cairo Communication vs. HCA Healthcare |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |