Correlation Between Suntory Beverage and EHEALTH
Can any of the company-specific risk be diversified away by investing in both Suntory Beverage and EHEALTH 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 Suntory Beverage and EHEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Suntory Beverage Food and EHEALTH, you can compare the effects of market volatilities on Suntory Beverage and EHEALTH 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 Suntory Beverage with a short position of EHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suntory Beverage and EHEALTH.
Diversification Opportunities for Suntory Beverage and EHEALTH
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Suntory and EHEALTH is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Suntory Beverage Food and EHEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EHEALTH and Suntory Beverage 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 Suntory Beverage Food are associated (or correlated) with EHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EHEALTH has no effect on the direction of Suntory Beverage i.e., Suntory Beverage and EHEALTH go up and down completely randomly.
Pair Corralation between Suntory Beverage and EHEALTH
Assuming the 90 days horizon Suntory Beverage Food is expected to under-perform the EHEALTH. But the stock apears to be less risky and, when comparing its historical volatility, Suntory Beverage Food is 2.45 times less risky than EHEALTH. The stock trades about -0.01 of its potential returns per unit of risk. The EHEALTH is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 539.00 in EHEALTH on September 1, 2024 and sell it today you would lose (44.00) from holding EHEALTH or give up 8.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suntory Beverage Food vs. EHEALTH
Performance |
| Timeline |
| Suntory Beverage Food |
| EHEALTH |
Suntory Beverage and EHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suntory Beverage and EHEALTH
The main advantage of trading using opposite Suntory Beverage and EHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suntory Beverage position performs unexpectedly, EHEALTH 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 EHEALTH will offset losses from the drop in EHEALTH's long position.| Suntory Beverage vs. Heineken Holding NV | Suntory Beverage vs. Superior Plus Corp | Suntory Beverage vs. NMI Holdings | Suntory Beverage vs. Origin Agritech |
| EHEALTH vs. SIVERS SEMICONDUCTORS AB | EHEALTH vs. Darden Restaurants | EHEALTH vs. Reliance Steel Aluminum | EHEALTH vs. Q2M Managementberatung AG |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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