Correlation Between Abingdon Health and MyHealthChecked Plc
Can any of the company-specific risk be diversified away by investing in both Abingdon Health and MyHealthChecked Plc 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 Abingdon Health and MyHealthChecked Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abingdon Health Plc and MyHealthChecked Plc, you can compare the effects of market volatilities on Abingdon Health and MyHealthChecked Plc 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 Abingdon Health with a short position of MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abingdon Health and MyHealthChecked Plc.
Diversification Opportunities for Abingdon Health and MyHealthChecked Plc
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Abingdon and MyHealthChecked is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Abingdon Health Plc and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and Abingdon 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 Abingdon Health Plc are associated (or correlated) with MyHealthChecked Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyHealthChecked Plc has no effect on the direction of Abingdon Health i.e., Abingdon Health and MyHealthChecked Plc go up and down completely randomly.
Pair Corralation between Abingdon Health and MyHealthChecked Plc
Assuming the 90 days trading horizon Abingdon Health Plc is expected to under-perform the MyHealthChecked Plc. But the stock apears to be less risky and, when comparing its historical volatility, Abingdon Health Plc is 1.18 times less risky than MyHealthChecked Plc. The stock trades about -0.21 of its potential returns per unit of risk. The MyHealthChecked Plc is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,325 in MyHealthChecked Plc on August 29, 2024 and sell it today you would lose (100.00) from holding MyHealthChecked Plc or give up 7.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abingdon Health Plc vs. MyHealthChecked Plc
Performance |
| Timeline |
| Abingdon Health Plc |
| MyHealthChecked Plc |
Abingdon Health and MyHealthChecked Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abingdon Health and MyHealthChecked Plc
The main advantage of trading using opposite Abingdon Health and MyHealthChecked Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abingdon Health position performs unexpectedly, MyHealthChecked Plc 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 MyHealthChecked Plc will offset losses from the drop in MyHealthChecked Plc's long position.| Abingdon Health vs. Samsung Electronics Co | Abingdon Health vs. Samsung Electronics Co | Abingdon Health vs. Hyundai Motor | Abingdon Health vs. Toyota Motor Corp |
| MyHealthChecked Plc vs. Samsung Electronics Co | MyHealthChecked Plc vs. Samsung Electronics Co | MyHealthChecked Plc vs. Hyundai Motor | MyHealthChecked Plc vs. Toyota Motor Corp |
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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