Correlation Between MEDICAL FACILITIES and ALIOR BANK
Can any of the company-specific risk be diversified away by investing in both MEDICAL FACILITIES and ALIOR BANK 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 FACILITIES and ALIOR BANK into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDICAL FACILITIES NEW and ALIOR BANK, you can compare the effects of market volatilities on MEDICAL FACILITIES and ALIOR BANK 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 FACILITIES with a short position of ALIOR BANK. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDICAL FACILITIES and ALIOR BANK.
Diversification Opportunities for MEDICAL FACILITIES and ALIOR BANK
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MEDICAL and ALIOR is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding MEDICAL FACILITIES NEW and ALIOR BANK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ALIOR BANK and MEDICAL FACILITIES 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 FACILITIES NEW are associated (or correlated) with ALIOR BANK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ALIOR BANK has no effect on the direction of MEDICAL FACILITIES i.e., MEDICAL FACILITIES and ALIOR BANK go up and down completely randomly.
Pair Corralation between MEDICAL FACILITIES and ALIOR BANK
Assuming the 90 days horizon MEDICAL FACILITIES NEW is expected to generate 0.94 times more return on investment than ALIOR BANK. However, MEDICAL FACILITIES NEW is 1.06 times less risky than ALIOR BANK. It trades about 0.26 of its potential returns per unit of risk. ALIOR BANK is currently generating about 0.11 per unit of risk. If you would invest 950.00 in MEDICAL FACILITIES NEW on September 2, 2024 and sell it today you would earn a total of 140.00 from holding MEDICAL FACILITIES NEW or generate 14.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
MEDICAL FACILITIES NEW vs. ALIOR BANK
Performance |
| Timeline |
| MEDICAL FACILITIES NEW |
| ALIOR BANK |
MEDICAL FACILITIES and ALIOR BANK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MEDICAL FACILITIES and ALIOR BANK
The main advantage of trading using opposite MEDICAL FACILITIES and ALIOR BANK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDICAL FACILITIES position performs unexpectedly, ALIOR BANK 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 ALIOR BANK will offset losses from the drop in ALIOR BANK's long position.| MEDICAL FACILITIES vs. United States Steel | MEDICAL FACILITIES vs. CosmoSteel Holdings Limited | MEDICAL FACILITIES vs. Reliance Steel Aluminum | MEDICAL FACILITIES vs. Monster Beverage Corp |
| ALIOR BANK vs. IMAGIN MEDICAL INC | ALIOR BANK vs. Japan Medical Dynamic | ALIOR BANK vs. MEDICAL FACILITIES NEW | ALIOR BANK vs. ETFS Coffee ETC |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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