Correlation Between HCA Healthcare and AJ Bell
Can any of the company-specific risk be diversified away by investing in both HCA Healthcare and AJ Bell 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 AJ Bell into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HCA Healthcare and AJ Bell plc, you can compare the effects of market volatilities on HCA Healthcare and AJ Bell 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 AJ Bell. Check out your portfolio center. Please also check ongoing floating volatility patterns of HCA Healthcare and AJ Bell.
Diversification Opportunities for HCA Healthcare and AJ Bell
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between HCA and AJB is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding HCA Healthcare and AJ Bell plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AJ Bell plc 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 AJ Bell. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AJ Bell plc has no effect on the direction of HCA Healthcare i.e., HCA Healthcare and AJ Bell go up and down completely randomly.
Pair Corralation between HCA Healthcare and AJ Bell
Assuming the 90 days trading horizon HCA Healthcare is expected to generate 4.12 times more return on investment than AJ Bell. However, HCA Healthcare is 4.12 times more volatile than AJ Bell plc. It trades about 0.03 of its potential returns per unit of risk. AJ Bell plc is currently generating about 0.04 per unit of risk. If you would invest 24,145 in HCA Healthcare on September 3, 2024 and sell it today you would earn a total of 8,418 from holding HCA Healthcare or generate 34.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.0% |
| Values | Daily Returns |
HCA Healthcare vs. AJ Bell plc
Performance |
| Timeline |
| HCA Healthcare |
| AJ Bell plc |
HCA Healthcare and AJ Bell Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HCA Healthcare and AJ Bell
The main advantage of trading using opposite HCA Healthcare and AJ Bell positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCA Healthcare position performs unexpectedly, AJ Bell 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 AJ Bell will offset losses from the drop in AJ Bell's long position.| HCA Healthcare vs. Catalyst Media Group | HCA Healthcare vs. CATLIN GROUP | HCA Healthcare vs. Magnora ASA | HCA Healthcare vs. RTW Venture Fund |
| AJ Bell vs. Target Healthcare REIT | AJ Bell vs. Inspiration Healthcare Group | AJ Bell vs. HCA Healthcare | AJ Bell vs. GlobalData PLC |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |