Correlation Between SoftBank Group and MyHealthChecked Plc
Can any of the company-specific risk be diversified away by investing in both SoftBank Group and MyHealthChecked Plc 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 SoftBank Group and MyHealthChecked Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SoftBank Group Corp and MyHealthChecked Plc, you can compare the effects of market volatilities on SoftBank Group and MyHealthChecked Plc 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 SoftBank Group with a short position of MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of SoftBank Group and MyHealthChecked Plc.
Diversification Opportunities for SoftBank Group and MyHealthChecked Plc
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SoftBank and MyHealthChecked is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding SoftBank Group Corp and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and SoftBank Group 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 SoftBank Group Corp are associated (or correlated) with MyHealthChecked Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyHealthChecked Plc has no effect on the direction of SoftBank Group i.e., SoftBank Group and MyHealthChecked Plc go up and down completely randomly.
Pair Corralation between SoftBank Group and MyHealthChecked Plc
Assuming the 90 days trading horizon SoftBank Group is expected to generate 1.21 times less return on investment than MyHealthChecked Plc. But when comparing it to its historical volatility, SoftBank Group Corp is 1.29 times less risky than MyHealthChecked Plc. It trades about 0.05 of its potential returns per unit of risk. MyHealthChecked Plc is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,125 in MyHealthChecked Plc on September 2, 2024 and sell it today you would earn a total of 75.00 from holding MyHealthChecked Plc or generate 6.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 65.15% |
| Values | Daily Returns |
SoftBank Group Corp vs. MyHealthChecked Plc
Performance |
| Timeline |
| SoftBank Group Corp |
| MyHealthChecked Plc |
SoftBank Group and MyHealthChecked Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SoftBank Group and MyHealthChecked Plc
The main advantage of trading using opposite SoftBank Group and MyHealthChecked Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SoftBank Group position performs unexpectedly, MyHealthChecked Plc 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 MyHealthChecked Plc will offset losses from the drop in MyHealthChecked Plc's long position.| SoftBank Group vs. Toyota Motor Corp | SoftBank Group vs. OTP Bank Nyrt | SoftBank Group vs. Las Vegas Sands | SoftBank Group vs. Yum Brands |
| MyHealthChecked Plc vs. Samsung Electronics Co | MyHealthChecked Plc vs. Samsung Electronics Co | MyHealthChecked Plc vs. Hyundai Motor | MyHealthChecked Plc vs. Toyota Motor Corp |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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