Correlation Between HCA Healthcare and Gaztransport
Can any of the company-specific risk be diversified away by investing in both HCA Healthcare and Gaztransport 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 Gaztransport into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HCA Healthcare and Gaztransport et Technigaz, you can compare the effects of market volatilities on HCA Healthcare and Gaztransport 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 Gaztransport. Check out your portfolio center. Please also check ongoing floating volatility patterns of HCA Healthcare and Gaztransport.
Diversification Opportunities for HCA Healthcare and Gaztransport
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HCA and Gaztransport is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding HCA Healthcare and Gaztransport et Technigaz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gaztransport et Technigaz 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 Gaztransport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gaztransport et Technigaz has no effect on the direction of HCA Healthcare i.e., HCA Healthcare and Gaztransport go up and down completely randomly.
Pair Corralation between HCA Healthcare and Gaztransport
Assuming the 90 days trading horizon HCA Healthcare is expected to under-perform the Gaztransport. In addition to that, HCA Healthcare is 1.05 times more volatile than Gaztransport et Technigaz. It trades about -0.46 of its total potential returns per unit of risk. Gaztransport et Technigaz is currently generating about -0.04 per unit of volatility. If you would invest 13,435 in Gaztransport et Technigaz on September 13, 2024 and sell it today you would lose (135.00) from holding Gaztransport et Technigaz or give up 1.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HCA Healthcare vs. Gaztransport et Technigaz
Performance |
| Timeline |
| HCA Healthcare |
| Gaztransport et Technigaz |
HCA Healthcare and Gaztransport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HCA Healthcare and Gaztransport
The main advantage of trading using opposite HCA Healthcare and Gaztransport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCA Healthcare position performs unexpectedly, Gaztransport 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 Gaztransport will offset losses from the drop in Gaztransport's long position.| HCA Healthcare vs. International Consolidated Airlines | HCA Healthcare vs. United Airlines Holdings | HCA Healthcare vs. Monster Beverage Corp | HCA Healthcare vs. Teradata Corp |
| Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Samsung Electronics Co | Gaztransport vs. Hyundai Motor | Gaztransport vs. Reliance Industries Ltd |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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