Correlation Between Healthcare and Smartgiant Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Healthcare Co and Smartgiant Technology Co, you can compare the effects of market volatilities on Healthcare and Smartgiant Technology 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 Smartgiant Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare and Smartgiant Technology.
Diversification Opportunities for Healthcare and Smartgiant Technology
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Healthcare and Smartgiant is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Healthcare Co and Smartgiant Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Smartgiant Technology 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 Smartgiant Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Smartgiant Technology has no effect on the direction of Healthcare i.e., Healthcare and Smartgiant Technology go up and down completely randomly.
Pair Corralation between Healthcare and Smartgiant Technology
Assuming the 90 days trading horizon Healthcare Co is expected to under-perform the Smartgiant Technology. But the stock apears to be less risky and, when comparing its historical volatility, Healthcare Co is 1.26 times less risky than Smartgiant Technology. The stock trades about -0.32 of its potential returns per unit of risk. The Smartgiant Technology Co is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 4,380 in Smartgiant Technology Co on October 12, 2024 and sell it today you would lose (361.00) from holding Smartgiant Technology Co or give up 8.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Healthcare Co vs. Smartgiant Technology Co
Performance |
| Timeline |
| Healthcare |
| Smartgiant Technology |
Healthcare and Smartgiant Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Healthcare and Smartgiant Technology
The main advantage of trading using opposite Healthcare and Smartgiant Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare position performs unexpectedly, Smartgiant Technology 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 Smartgiant Technology will offset losses from the drop in Smartgiant Technology's long position.| Healthcare vs. East Money Information | Healthcare vs. Guangdong Jingyi Metal | Healthcare vs. Lonkey Industrial Co | Healthcare vs. Jiangxi Naipu Mining |
| Smartgiant Technology vs. Omnijoi Media Corp | Smartgiant Technology vs. Healthcare Co | Smartgiant Technology vs. Duzhe Publishing Media | Smartgiant Technology vs. De Rucci Healthy |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |