Correlation Between Raytheon Technologies and MyHealthChecked Plc
Can any of the company-specific risk be diversified away by investing in both Raytheon Technologies 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 Raytheon Technologies and MyHealthChecked Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Raytheon Technologies Corp and MyHealthChecked Plc, you can compare the effects of market volatilities on Raytheon Technologies 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 Raytheon Technologies with a short position of MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Raytheon Technologies and MyHealthChecked Plc.
Diversification Opportunities for Raytheon Technologies and MyHealthChecked Plc
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Raytheon and MyHealthChecked is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Raytheon Technologies Corp and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and Raytheon Technologies 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 Raytheon Technologies 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 Raytheon Technologies i.e., Raytheon Technologies and MyHealthChecked Plc go up and down completely randomly.
Pair Corralation between Raytheon Technologies and MyHealthChecked Plc
Assuming the 90 days trading horizon Raytheon Technologies is expected to generate 1.0 times less return on investment than MyHealthChecked Plc. But when comparing it to its historical volatility, Raytheon Technologies Corp is 3.38 times less risky than MyHealthChecked Plc. It trades about 0.14 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 975.00 in MyHealthChecked Plc on September 4, 2024 and sell it today you would earn a total of 225.00 from holding MyHealthChecked Plc or generate 23.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.38% |
| Values | Daily Returns |
Raytheon Technologies Corp vs. MyHealthChecked Plc
Performance |
| Timeline |
| Raytheon Technologies |
| MyHealthChecked Plc |
Raytheon Technologies and MyHealthChecked Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Raytheon Technologies and MyHealthChecked Plc
The main advantage of trading using opposite Raytheon Technologies and MyHealthChecked Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Raytheon Technologies 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.| Raytheon Technologies vs. mobilezone holding AG | Raytheon Technologies vs. JB Hunt Transport | Raytheon Technologies vs. Zoom Video Communications | Raytheon Technologies vs. Home Depot |
| MyHealthChecked Plc vs. Playtech Plc | MyHealthChecked Plc vs. Raytheon Technologies Corp | MyHealthChecked Plc vs. MT Bank Corp | MyHealthChecked Plc vs. Bank of Ireland |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |