Correlation Between NIGHTINGALE HEALTH and Comba Telecom
Can any of the company-specific risk be diversified away by investing in both NIGHTINGALE HEALTH and Comba Telecom 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 NIGHTINGALE HEALTH and Comba Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NIGHTINGALE HEALTH EO and Comba Telecom Systems, you can compare the effects of market volatilities on NIGHTINGALE HEALTH and Comba Telecom 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 NIGHTINGALE HEALTH with a short position of Comba Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of NIGHTINGALE HEALTH and Comba Telecom.
Diversification Opportunities for NIGHTINGALE HEALTH and Comba Telecom
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between NIGHTINGALE and Comba is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding NIGHTINGALE HEALTH EO and Comba Telecom Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Comba Telecom Systems and NIGHTINGALE HEALTH 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 NIGHTINGALE HEALTH EO are associated (or correlated) with Comba Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Comba Telecom Systems has no effect on the direction of NIGHTINGALE HEALTH i.e., NIGHTINGALE HEALTH and Comba Telecom go up and down completely randomly.
Pair Corralation between NIGHTINGALE HEALTH and Comba Telecom
Assuming the 90 days horizon NIGHTINGALE HEALTH EO is expected to generate 0.75 times more return on investment than Comba Telecom. However, NIGHTINGALE HEALTH EO is 1.33 times less risky than Comba Telecom. It trades about 0.0 of its potential returns per unit of risk. Comba Telecom Systems is currently generating about -0.13 per unit of risk. If you would invest 289.00 in NIGHTINGALE HEALTH EO on October 16, 2024 and sell it today you would lose (1.00) from holding NIGHTINGALE HEALTH EO or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NIGHTINGALE HEALTH EO vs. Comba Telecom Systems
Performance |
| Timeline |
| NIGHTINGALE HEALTH |
| Comba Telecom Systems |
NIGHTINGALE HEALTH and Comba Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NIGHTINGALE HEALTH and Comba Telecom
The main advantage of trading using opposite NIGHTINGALE HEALTH and Comba Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NIGHTINGALE HEALTH position performs unexpectedly, Comba Telecom 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 Comba Telecom will offset losses from the drop in Comba Telecom's long position.| NIGHTINGALE HEALTH vs. FAST RETAIL ADR | NIGHTINGALE HEALTH vs. BURLINGTON STORES | NIGHTINGALE HEALTH vs. NetSol Technologies | NIGHTINGALE HEALTH vs. Ross Stores |
| Comba Telecom vs. NIGHTINGALE HEALTH EO | Comba Telecom vs. FIH MOBILE | Comba Telecom vs. Singapore Telecommunications Limited | Comba Telecom vs. Geely Automobile Holdings |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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