Correlation Between SS Healthcare and Great Computer
Can any of the company-specific risk be diversified away by investing in both SS Healthcare and Great Computer 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 Great Computer 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 Great Computer, you can compare the effects of market volatilities on SS Healthcare and Great Computer 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 Great Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of SS Healthcare and Great Computer.
Diversification Opportunities for SS Healthcare and Great Computer
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between 4198 and Great is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding SS Healthcare Holding and Great Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great Computer 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 Great Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great Computer has no effect on the direction of SS Healthcare i.e., SS Healthcare and Great Computer go up and down completely randomly.
Pair Corralation between SS Healthcare and Great Computer
Assuming the 90 days trading horizon SS Healthcare Holding is expected to generate 0.63 times more return on investment than Great Computer. However, SS Healthcare Holding is 1.58 times less risky than Great Computer. It trades about 0.0 of its potential returns per unit of risk. Great Computer is currently generating about -0.09 per unit of risk. If you would invest 3,245 in SS Healthcare Holding on September 3, 2024 and sell it today you would lose (35.00) from holding SS Healthcare Holding or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SS Healthcare Holding vs. Great Computer
Performance |
| Timeline |
| SS Healthcare Holding |
| Great Computer |
SS Healthcare and Great Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SS Healthcare and Great Computer
The main advantage of trading using opposite SS Healthcare and Great Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SS Healthcare position performs unexpectedly, Great Computer 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 Great Computer will offset losses from the drop in Great Computer's long position.| SS Healthcare vs. Sunspring Metal Corp | SS Healthcare vs. WinMate Communication INC | SS Healthcare vs. Asia Metal Industries | SS Healthcare vs. RiTdisplay Corp |
| Great Computer vs. Airtac International Group | Great Computer vs. TECO Electric Machinery | Great Computer vs. Chung Hsin Electric Machinery | Great Computer vs. Ruentex Development Co |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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