Correlation Between HYGEIA HC and JD HEALTH
Can any of the company-specific risk be diversified away by investing in both HYGEIA HC and JD HEALTH 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 HYGEIA HC and JD HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HYGEIA HC HLDGS and JD HEALTH INTL, you can compare the effects of market volatilities on HYGEIA HC and JD HEALTH 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 HYGEIA HC with a short position of JD HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYGEIA HC and JD HEALTH.
Diversification Opportunities for HYGEIA HC and JD HEALTH
Poor diversification
The 3 months correlation between HYGEIA and 8ZN is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding HYGEIA HC HLDGS and JD HEALTH INTL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JD HEALTH INTL and HYGEIA HC 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 HYGEIA HC HLDGS are associated (or correlated) with JD HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JD HEALTH INTL has no effect on the direction of HYGEIA HC i.e., HYGEIA HC and JD HEALTH go up and down completely randomly.
Pair Corralation between HYGEIA HC and JD HEALTH
Assuming the 90 days horizon HYGEIA HC HLDGS is expected to under-perform the JD HEALTH. In addition to that, HYGEIA HC is 1.28 times more volatile than JD HEALTH INTL. It trades about -0.07 of its total potential returns per unit of risk. JD HEALTH INTL is currently generating about -0.01 per unit of volatility. If you would invest 434.00 in JD HEALTH INTL on August 26, 2024 and sell it today you would lose (104.00) from holding JD HEALTH INTL or give up 23.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HYGEIA HC HLDGS vs. JD HEALTH INTL
Performance |
| Timeline |
| HYGEIA HC HLDGS |
| JD HEALTH INTL |
HYGEIA HC and JD HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HYGEIA HC and JD HEALTH
The main advantage of trading using opposite HYGEIA HC and JD HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HYGEIA HC position performs unexpectedly, JD HEALTH 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 JD HEALTH will offset losses from the drop in JD HEALTH's long position.| HYGEIA HC vs. Option Care Health | HYGEIA HC vs. Superior Plus Corp | HYGEIA HC vs. Origin Agritech | HYGEIA HC vs. Identiv |
| JD HEALTH vs. Option Care Health | JD HEALTH vs. HYGEIA HC HLDGS | JD HEALTH vs. Superior Plus Corp | JD HEALTH vs. Origin Agritech |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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