Correlation Between Excelsior Medical and SS Healthcare
Can any of the company-specific risk be diversified away by investing in both Excelsior Medical and SS Healthcare 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 SS Healthcare 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 SS Healthcare Holding, you can compare the effects of market volatilities on Excelsior Medical and SS Healthcare 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 SS Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Excelsior Medical and SS Healthcare.
Diversification Opportunities for Excelsior Medical and SS Healthcare
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Excelsior and 4198 is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Excelsior Medical Co and SS Healthcare Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS Healthcare Holding 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 SS Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS Healthcare Holding has no effect on the direction of Excelsior Medical i.e., Excelsior Medical and SS Healthcare go up and down completely randomly.
Pair Corralation between Excelsior Medical and SS Healthcare
Assuming the 90 days trading horizon Excelsior Medical Co is expected to generate 0.27 times more return on investment than SS Healthcare. However, Excelsior Medical Co is 3.74 times less risky than SS Healthcare. It trades about 0.23 of its potential returns per unit of risk. SS Healthcare Holding is currently generating about 0.05 per unit of risk. If you would invest 8,550 in Excelsior Medical Co on November 28, 2024 and sell it today you would earn a total of 140.00 from holding Excelsior Medical Co or generate 1.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Excelsior Medical Co vs. SS Healthcare Holding
Performance |
| Timeline |
| Excelsior Medical |
| SS Healthcare Holding |
Excelsior Medical and SS Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Excelsior Medical and SS Healthcare
The main advantage of trading using opposite Excelsior Medical and SS Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Excelsior Medical position performs unexpectedly, SS Healthcare 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 SS Healthcare will offset losses from the drop in SS Healthcare's long position.| Excelsior Medical vs. Wellell | Excelsior Medical vs. YungShin Global Holding | Excelsior Medical vs. Abnova Taiwan Corp | Excelsior Medical vs. Phytohealth Corp |
| SS Healthcare vs. Universal Vision Biotechnology | SS Healthcare vs. Excelsior Medical Co | SS Healthcare vs. Delta Asia International | SS Healthcare vs. Hi Clearance |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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