Correlation Between Alfa Financial and MyHealthChecked Plc
Can any of the company-specific risk be diversified away by investing in both Alfa Financial 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 Alfa Financial and MyHealthChecked Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alfa Financial Software and MyHealthChecked Plc, you can compare the effects of market volatilities on Alfa Financial 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 Alfa Financial with a short position of MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alfa Financial and MyHealthChecked Plc.
Diversification Opportunities for Alfa Financial and MyHealthChecked Plc
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alfa and MyHealthChecked is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Alfa Financial Software and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and Alfa Financial 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 Alfa Financial Software 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 Alfa Financial i.e., Alfa Financial and MyHealthChecked Plc go up and down completely randomly.
Pair Corralation between Alfa Financial and MyHealthChecked Plc
Assuming the 90 days trading horizon Alfa Financial Software is expected to generate 0.73 times more return on investment than MyHealthChecked Plc. However, Alfa Financial Software is 1.38 times less risky than MyHealthChecked Plc. It trades about 0.14 of its potential returns per unit of risk. MyHealthChecked Plc is currently generating about -0.05 per unit of risk. If you would invest 19,980 in Alfa Financial Software on August 30, 2024 and sell it today you would earn a total of 2,370 from holding Alfa Financial Software or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alfa Financial Software vs. MyHealthChecked Plc
Performance |
| Timeline |
| Alfa Financial Software |
| MyHealthChecked Plc |
Alfa Financial and MyHealthChecked Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alfa Financial and MyHealthChecked Plc
The main advantage of trading using opposite Alfa Financial and MyHealthChecked Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alfa Financial 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.| Alfa Financial vs. Samsung Electronics Co | Alfa Financial vs. Samsung Electronics Co | Alfa Financial vs. Toyota Motor Corp | Alfa Financial vs. Reliance Industries Ltd |
| 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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