Correlation Between Onyx Healthcare and SS Healthcare
Can any of the company-specific risk be diversified away by investing in both Onyx Healthcare and SS Healthcare 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 Onyx Healthcare and SS Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Onyx Healthcare and SS Healthcare Holding, you can compare the effects of market volatilities on Onyx Healthcare and SS Healthcare 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 Onyx Healthcare with a short position of SS Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Onyx Healthcare and SS Healthcare.
Diversification Opportunities for Onyx Healthcare and SS Healthcare
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Onyx and 4198 is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Onyx Healthcare and SS Healthcare Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SS Healthcare Holding and Onyx 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 Onyx Healthcare are associated (or correlated) with SS Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SS Healthcare Holding has no effect on the direction of Onyx Healthcare i.e., Onyx Healthcare and SS Healthcare go up and down completely randomly.
Pair Corralation between Onyx Healthcare and SS Healthcare
Assuming the 90 days trading horizon Onyx Healthcare is expected to generate 0.89 times more return on investment than SS Healthcare. However, Onyx Healthcare is 1.12 times less risky than SS Healthcare. It trades about 0.01 of its potential returns per unit of risk. SS Healthcare Holding is currently generating about -0.05 per unit of risk. If you would invest 16,216 in Onyx Healthcare on August 31, 2024 and sell it today you would lose (516.00) from holding Onyx Healthcare or give up 3.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Onyx Healthcare vs. SS Healthcare Holding
Performance |
| Timeline |
| Onyx Healthcare |
| SS Healthcare Holding |
Onyx Healthcare and SS Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Onyx Healthcare and SS Healthcare
The main advantage of trading using opposite Onyx Healthcare and SS Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Onyx Healthcare position performs unexpectedly, SS Healthcare 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 SS Healthcare will offset losses from the drop in SS Healthcare's long position.| Onyx Healthcare vs. YuantaP shares Taiwan Top | Onyx Healthcare vs. YuantaP shares Taiwan Mid Cap | Onyx Healthcare vs. Fubon MSCI Taiwan | Onyx Healthcare vs. YuantaP shares Taiwan Electronics |
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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 Transaction History module to view history of all your transactions and understand their impact on performance.
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