Correlation Between SS Healthcare and Pontex Polyblend
Can any of the company-specific risk be diversified away by investing in both SS Healthcare and Pontex Polyblend 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 Pontex Polyblend 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 Pontex Polyblend CoLtd, you can compare the effects of market volatilities on SS Healthcare and Pontex Polyblend 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 Pontex Polyblend. Check out your portfolio center. Please also check ongoing floating volatility patterns of SS Healthcare and Pontex Polyblend.
Diversification Opportunities for SS Healthcare and Pontex Polyblend
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between 4198 and Pontex is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding SS Healthcare Holding and Pontex Polyblend CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pontex Polyblend CoLtd 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 Pontex Polyblend. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pontex Polyblend CoLtd has no effect on the direction of SS Healthcare i.e., SS Healthcare and Pontex Polyblend go up and down completely randomly.
Pair Corralation between SS Healthcare and Pontex Polyblend
Assuming the 90 days trading horizon SS Healthcare is expected to generate 1.73 times less return on investment than Pontex Polyblend. In addition to that, SS Healthcare is 1.14 times more volatile than Pontex Polyblend CoLtd. It trades about 0.03 of its total potential returns per unit of risk. Pontex Polyblend CoLtd is currently generating about 0.05 per unit of volatility. If you would invest 1,276 in Pontex Polyblend CoLtd on September 14, 2024 and sell it today you would earn a total of 869.00 from holding Pontex Polyblend CoLtd or generate 68.1% 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. Pontex Polyblend CoLtd
Performance |
| Timeline |
| SS Healthcare Holding |
| Pontex Polyblend CoLtd |
SS Healthcare and Pontex Polyblend Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SS Healthcare and Pontex Polyblend
The main advantage of trading using opposite SS Healthcare and Pontex Polyblend positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SS Healthcare position performs unexpectedly, Pontex Polyblend 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 Pontex Polyblend will offset losses from the drop in Pontex Polyblend's long position.| SS Healthcare vs. Simple Mart Retail | SS Healthcare vs. Tsang Yow Industrial | SS Healthcare vs. Mechema Chemicals Int | SS Healthcare vs. Tradetool Auto Co |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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