Correlation Between BROADWIND ENRGY and NIGHTINGALE HEALTH
Can any of the company-specific risk be diversified away by investing in both BROADWIND ENRGY and NIGHTINGALE HEALTH 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 ENRGY and NIGHTINGALE HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BROADWIND ENRGY and NIGHTINGALE HEALTH EO, you can compare the effects of market volatilities on BROADWIND ENRGY and NIGHTINGALE HEALTH 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 ENRGY with a short position of NIGHTINGALE HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of BROADWIND ENRGY and NIGHTINGALE HEALTH.
Diversification Opportunities for BROADWIND ENRGY and NIGHTINGALE HEALTH
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between BROADWIND and NIGHTINGALE is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding BROADWIND ENRGY and NIGHTINGALE HEALTH EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NIGHTINGALE HEALTH and BROADWIND ENRGY 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 ENRGY are associated (or correlated) with NIGHTINGALE HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NIGHTINGALE HEALTH has no effect on the direction of BROADWIND ENRGY i.e., BROADWIND ENRGY and NIGHTINGALE HEALTH go up and down completely randomly.
Pair Corralation between BROADWIND ENRGY and NIGHTINGALE HEALTH
Assuming the 90 days trading horizon BROADWIND ENRGY is expected to generate 1.61 times more return on investment than NIGHTINGALE HEALTH. However, BROADWIND ENRGY is 1.61 times more volatile than NIGHTINGALE HEALTH EO. It trades about 0.02 of its potential returns per unit of risk. NIGHTINGALE HEALTH EO is currently generating about 0.02 per unit of risk. If you would invest 168.00 in BROADWIND ENRGY on October 30, 2024 and sell it today you would earn a total of 0.00 from holding BROADWIND ENRGY or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BROADWIND ENRGY vs. NIGHTINGALE HEALTH EO
Performance |
| Timeline |
| BROADWIND ENRGY |
| NIGHTINGALE HEALTH |
BROADWIND ENRGY and NIGHTINGALE HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BROADWIND ENRGY and NIGHTINGALE HEALTH
The main advantage of trading using opposite BROADWIND ENRGY and NIGHTINGALE HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BROADWIND ENRGY position performs unexpectedly, NIGHTINGALE HEALTH 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 NIGHTINGALE HEALTH will offset losses from the drop in NIGHTINGALE HEALTH's long position.| BROADWIND ENRGY vs. Apple Inc | BROADWIND ENRGY vs. Apple Inc | BROADWIND ENRGY vs. Apple Inc | BROADWIND ENRGY vs. Apple Inc |
| NIGHTINGALE HEALTH vs. NH HOTEL GROUP | NIGHTINGALE HEALTH vs. SCIENCE IN SPORT | NIGHTINGALE HEALTH vs. BII Railway Transportation | NIGHTINGALE HEALTH vs. Pebblebrook Hotel Trust |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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