Correlation Between HCA Healthcare and Symphony Environmental
Can any of the company-specific risk be diversified away by investing in both HCA Healthcare and Symphony Environmental 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 Symphony Environmental into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HCA Healthcare and Symphony Environmental Technologies, you can compare the effects of market volatilities on HCA Healthcare and Symphony Environmental 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 Symphony Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of HCA Healthcare and Symphony Environmental.
Diversification Opportunities for HCA Healthcare and Symphony Environmental
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between HCA and Symphony is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding HCA Healthcare and Symphony Environmental Technol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Symphony Environmental 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 Symphony Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Symphony Environmental has no effect on the direction of HCA Healthcare i.e., HCA Healthcare and Symphony Environmental go up and down completely randomly.
Pair Corralation between HCA Healthcare and Symphony Environmental
Assuming the 90 days trading horizon HCA Healthcare is expected to generate 1.55 times more return on investment than Symphony Environmental. However, HCA Healthcare is 1.55 times more volatile than Symphony Environmental Technologies. It trades about 0.03 of its potential returns per unit of risk. Symphony Environmental Technologies is currently generating about -0.02 per unit of risk. If you would invest 23,770 in HCA Healthcare on September 20, 2024 and sell it today you would earn a total of 6,421 from holding HCA Healthcare or generate 27.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.8% |
| Values | Daily Returns |
HCA Healthcare vs. Symphony Environmental Technol
Performance |
| Timeline |
| HCA Healthcare |
| Symphony Environmental |
HCA Healthcare and Symphony Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HCA Healthcare and Symphony Environmental
The main advantage of trading using opposite HCA Healthcare and Symphony Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCA Healthcare position performs unexpectedly, Symphony Environmental 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 Symphony Environmental will offset losses from the drop in Symphony Environmental's long position.| HCA Healthcare vs. Samsung Electronics Co | HCA Healthcare vs. Samsung Electronics Co | HCA Healthcare vs. Hyundai Motor | HCA Healthcare vs. Reliance Industries Ltd |
| Symphony Environmental vs. Atalaya Mining | Symphony Environmental vs. Central Asia Metals | Symphony Environmental vs. Metals Exploration Plc | Symphony Environmental vs. SANTANDER UK 10 |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Stocks Directory Find actively traded stocks across global markets | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |