Correlation Between Medical Properties and Anglo Asian
Can any of the company-specific risk be diversified away by investing in both Medical Properties and Anglo Asian 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 Medical Properties and Anglo Asian into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medical Properties Trust and Anglo Asian Mining, you can compare the effects of market volatilities on Medical Properties and Anglo Asian 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 Medical Properties with a short position of Anglo Asian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and Anglo Asian.
Diversification Opportunities for Medical Properties and Anglo Asian
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Medical and Anglo is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust and Anglo Asian Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo Asian Mining and Medical Properties 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 Medical Properties Trust are associated (or correlated) with Anglo Asian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo Asian Mining has no effect on the direction of Medical Properties i.e., Medical Properties and Anglo Asian go up and down completely randomly.
Pair Corralation between Medical Properties and Anglo Asian
Assuming the 90 days trading horizon Medical Properties Trust is expected to generate 1.37 times more return on investment than Anglo Asian. However, Medical Properties is 1.37 times more volatile than Anglo Asian Mining. It trades about 0.21 of its potential returns per unit of risk. Anglo Asian Mining is currently generating about 0.13 per unit of risk. If you would invest 404.00 in Medical Properties Trust on November 6, 2024 and sell it today you would earn a total of 68.00 from holding Medical Properties Trust or generate 16.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medical Properties Trust vs. Anglo Asian Mining
Performance |
| Timeline |
| Medical Properties Trust |
| Anglo Asian Mining |
Medical Properties and Anglo Asian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and Anglo Asian
The main advantage of trading using opposite Medical Properties and Anglo Asian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties position performs unexpectedly, Anglo Asian 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 Anglo Asian will offset losses from the drop in Anglo Asian's long position.| Medical Properties vs. Synthomer plc | Medical Properties vs. Atalaya Mining | Medical Properties vs. Griffin Mining | Medical Properties vs. First Majestic Silver |
| Anglo Asian vs. Molson Coors Beverage | Anglo Asian vs. Vulcan Materials Co | Anglo Asian vs. Applied Materials | Anglo Asian vs. Various Eateries 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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