Correlation Between Universal Health and Autins Group
Can any of the company-specific risk be diversified away by investing in both Universal Health and Autins Group 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 Universal Health and Autins Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Health Services and Autins Group plc, you can compare the effects of market volatilities on Universal Health and Autins Group 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 Universal Health with a short position of Autins Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Health and Autins Group.
Diversification Opportunities for Universal Health and Autins Group
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Universal and Autins is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Universal Health Services and Autins Group plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Autins Group plc and Universal Health 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 Universal Health Services are associated (or correlated) with Autins Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Autins Group plc has no effect on the direction of Universal Health i.e., Universal Health and Autins Group go up and down completely randomly.
Pair Corralation between Universal Health and Autins Group
Assuming the 90 days trading horizon Universal Health Services is expected to generate 0.24 times more return on investment than Autins Group. However, Universal Health Services is 4.18 times less risky than Autins Group. It trades about -0.1 of its potential returns per unit of risk. Autins Group plc is currently generating about -0.28 per unit of risk. If you would invest 20,903 in Universal Health Services on September 4, 2024 and sell it today you would lose (522.00) from holding Universal Health Services or give up 2.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Universal Health Services vs. Autins Group plc
Performance |
| Timeline |
| Universal Health Services |
| Autins Group plc |
Universal Health and Autins Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Health and Autins Group
The main advantage of trading using opposite Universal Health and Autins Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Health position performs unexpectedly, Autins Group 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 Autins Group will offset losses from the drop in Autins Group's long position.| Universal Health vs. Samsung Electronics Co | Universal Health vs. Samsung Electronics Co | Universal Health vs. Hyundai Motor | Universal Health vs. Toyota Motor Corp |
| Autins Group vs. Universal Health Services | Autins Group vs. Spire Healthcare Group | Autins Group vs. Fevertree Drinks Plc | Autins Group vs. MyHealthChecked 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |