Correlation Between SHIP HEALTHCARE and Anglo American
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By analyzing existing cross correlation between SHIP HEALTHCARE HLDGINC and Anglo American plc, you can compare the effects of market volatilities on SHIP HEALTHCARE and Anglo American 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 SHIP HEALTHCARE with a short position of Anglo American. Check out your portfolio center. Please also check ongoing floating volatility patterns of SHIP HEALTHCARE and Anglo American.
Diversification Opportunities for SHIP HEALTHCARE and Anglo American
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between SHIP and Anglo is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding SHIP HEALTHCARE HLDGINC and Anglo American plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anglo American plc and SHIP 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 SHIP HEALTHCARE HLDGINC are associated (or correlated) with Anglo American. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anglo American plc has no effect on the direction of SHIP HEALTHCARE i.e., SHIP HEALTHCARE and Anglo American go up and down completely randomly.
Pair Corralation between SHIP HEALTHCARE and Anglo American
Assuming the 90 days horizon SHIP HEALTHCARE is expected to generate 4.16 times less return on investment than Anglo American. But when comparing it to its historical volatility, SHIP HEALTHCARE HLDGINC is 1.18 times less risky than Anglo American. It trades about 0.0 of its potential returns per unit of risk. Anglo American plc is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,081 in Anglo American plc on September 3, 2024 and sell it today you would lose (54.00) from holding Anglo American plc or give up 1.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
SHIP HEALTHCARE HLDGINC vs. Anglo American plc
Performance |
| Timeline |
| SHIP HEALTHCARE HLDGINC |
| Anglo American plc |
SHIP HEALTHCARE and Anglo American Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SHIP HEALTHCARE and Anglo American
The main advantage of trading using opposite SHIP HEALTHCARE and Anglo American positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SHIP HEALTHCARE position performs unexpectedly, Anglo American 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 Anglo American will offset losses from the drop in Anglo American's long position.| SHIP HEALTHCARE vs. DEVRY EDUCATION GRP | SHIP HEALTHCARE vs. Titan Machinery | SHIP HEALTHCARE vs. CHINA EDUCATION GROUP | SHIP HEALTHCARE vs. United Utilities Group |
| Anglo American vs. Summit Hotel Properties | Anglo American vs. Apollo Investment Corp | Anglo American vs. Choice Hotels International | Anglo American vs. New Residential Investment |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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