Correlation Between Broadwind and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both Broadwind and MEDICAL FACILITIES 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 Broadwind and MEDICAL FACILITIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broadwind and MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on Broadwind and MEDICAL FACILITIES 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 Broadwind with a short position of MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadwind and MEDICAL FACILITIES.
Diversification Opportunities for Broadwind and MEDICAL FACILITIES
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Broadwind and MEDICAL is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Broadwind and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW and Broadwind 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 Broadwind are associated (or correlated) with MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of Broadwind i.e., Broadwind and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between Broadwind and MEDICAL FACILITIES
Assuming the 90 days trading horizon Broadwind is expected to under-perform the MEDICAL FACILITIES. In addition to that, Broadwind is 1.82 times more volatile than MEDICAL FACILITIES NEW. It trades about -0.02 of its total potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.07 per unit of volatility. If you would invest 513.00 in MEDICAL FACILITIES NEW on October 12, 2024 and sell it today you would earn a total of 517.00 from holding MEDICAL FACILITIES NEW or generate 100.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broadwind vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| Broadwind |
| MEDICAL FACILITIES NEW |
Broadwind and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadwind and MEDICAL FACILITIES
The main advantage of trading using opposite Broadwind and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadwind position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| Broadwind vs. Webster Financial | Broadwind vs. INTERSHOP Communications Aktiengesellschaft | Broadwind vs. Casio Computer CoLtd | Broadwind vs. Computershare Limited |
| MEDICAL FACILITIES vs. Burlington Stores | MEDICAL FACILITIES vs. QUEEN S ROAD | MEDICAL FACILITIES vs. Broadwind | MEDICAL FACILITIES vs. TRAINLINE PLC LS |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |