Correlation Between SS Healthcare and Universal Vision
Can any of the company-specific risk be diversified away by investing in both SS Healthcare and Universal Vision 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 SS Healthcare and Universal Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SS Healthcare Holding and Universal Vision Biotechnology, you can compare the effects of market volatilities on SS Healthcare and Universal Vision 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 SS Healthcare with a short position of Universal Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of SS Healthcare and Universal Vision.
Diversification Opportunities for SS Healthcare and Universal Vision
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between 4198 and Universal is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding SS Healthcare Holding and Universal Vision Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Vision Bio and SS Healthcare 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 SS Healthcare Holding are associated (or correlated) with Universal Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Vision Bio has no effect on the direction of SS Healthcare i.e., SS Healthcare and Universal Vision go up and down completely randomly.
Pair Corralation between SS Healthcare and Universal Vision
Assuming the 90 days trading horizon SS Healthcare is expected to generate 8.81 times less return on investment than Universal Vision. In addition to that, SS Healthcare is 1.36 times more volatile than Universal Vision Biotechnology. It trades about 0.05 of its total potential returns per unit of risk. Universal Vision Biotechnology is currently generating about 0.59 per unit of volatility. If you would invest 20,550 in Universal Vision Biotechnology on November 28, 2024 and sell it today you would earn a total of 2,500 from holding Universal Vision Biotechnology or generate 12.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SS Healthcare Holding vs. Universal Vision Biotechnology
Performance |
| Timeline |
| SS Healthcare Holding |
| Universal Vision Bio |
SS Healthcare and Universal Vision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SS Healthcare and Universal Vision
The main advantage of trading using opposite SS Healthcare and Universal Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SS Healthcare position performs unexpectedly, Universal Vision 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 Universal Vision will offset losses from the drop in Universal Vision's long position.| SS Healthcare vs. Universal Vision Biotechnology | SS Healthcare vs. Excelsior Medical Co | SS Healthcare vs. Delta Asia International | SS Healthcare vs. Hi Clearance |
| Universal Vision vs. Shin Kong Financial | Universal Vision vs. Tainet Communication System | Universal Vision vs. Kings Town Bank | Universal Vision vs. Landis Taipei Hotel |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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