Correlation Between Excelsior Medical and Pacific Hospital
Can any of the company-specific risk be diversified away by investing in both Excelsior Medical and Pacific Hospital 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 Excelsior Medical and Pacific Hospital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Excelsior Medical Co and Pacific Hospital Supply, you can compare the effects of market volatilities on Excelsior Medical and Pacific Hospital 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 Excelsior Medical with a short position of Pacific Hospital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Medical and Pacific Hospital.
Diversification Opportunities for Excelsior Medical and Pacific Hospital
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Excelsior and Pacific is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Medical Co and Pacific Hospital Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Hospital Supply and Excelsior Medical 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 Excelsior Medical Co are associated (or correlated) with Pacific Hospital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Hospital Supply has no effect on the direction of Excelsior Medical i.e., Excelsior Medical and Pacific Hospital go up and down completely randomly.
Pair Corralation between Excelsior Medical and Pacific Hospital
Assuming the 90 days trading horizon Excelsior Medical Co is expected to under-perform the Pacific Hospital. In addition to that, Excelsior Medical is 1.21 times more volatile than Pacific Hospital Supply. It trades about 0.0 of its total potential returns per unit of risk. Pacific Hospital Supply is currently generating about 0.07 per unit of volatility. If you would invest 7,901 in Pacific Hospital Supply on September 1, 2024 and sell it today you would earn a total of 1,029 from holding Pacific Hospital Supply or generate 13.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelsior Medical Co vs. Pacific Hospital Supply
Performance |
| Timeline |
| Excelsior Medical |
| Pacific Hospital Supply |
Excelsior Medical and Pacific Hospital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Medical and Pacific Hospital
The main advantage of trading using opposite Excelsior Medical and Pacific Hospital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Medical position performs unexpectedly, Pacific Hospital 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 Pacific Hospital will offset losses from the drop in Pacific Hospital's long position.| Excelsior Medical vs. Wellell | Excelsior Medical vs. YungShin Global Holding | Excelsior Medical vs. Abnova Taiwan Corp | Excelsior Medical vs. Phytohealth Corp |
| Pacific Hospital vs. Universal Vision Biotechnology | Pacific Hospital vs. Excelsior Medical Co | Pacific Hospital vs. Hi Clearance | Pacific Hospital vs. Brighten Optix |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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