Correlation Between Healthcare and Poly Real
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By analyzing existing cross correlation between Healthcare Co and Poly Real Estate, you can compare the effects of market volatilities on Healthcare and Poly Real 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 Healthcare with a short position of Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Poly Real.
Diversification Opportunities for Healthcare and Poly Real
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Healthcare and Poly is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate and 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 Healthcare Co are associated (or correlated) with Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of Healthcare i.e., Healthcare and Poly Real go up and down completely randomly.
Pair Corralation between Healthcare and Poly Real
Assuming the 90 days trading horizon Healthcare Co is expected to under-perform the Poly Real. But the stock apears to be less risky and, when comparing its historical volatility, Healthcare Co is 1.11 times less risky than Poly Real. The stock trades about -0.05 of its potential returns per unit of risk. The Poly Real Estate is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 954.00 in Poly Real Estate on August 28, 2024 and sell it today you would earn a total of 20.00 from holding Poly Real Estate or generate 2.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Co vs. Poly Real Estate
Performance |
| Timeline |
| Healthcare |
| Poly Real Estate |
Healthcare and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Poly Real
The main advantage of trading using opposite Healthcare and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.| Healthcare vs. Offshore Oil Engineering | Healthcare vs. Northking Information Technology | Healthcare vs. Air China Ltd | Healthcare vs. Emdoor Information Co |
| Poly Real vs. Hangzhou Gaoxin Rubber | Poly Real vs. Humanwell Healthcare Group | Poly Real vs. Renxin New Material | Poly Real vs. Suzhou Xingye Material |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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