Correlation Between BTC Health and Oneview Healthcare
Can any of the company-specific risk be diversified away by investing in both BTC Health and Oneview Healthcare 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 BTC Health and Oneview Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTC Health Limited and Oneview Healthcare PLC, you can compare the effects of market volatilities on BTC Health and Oneview Healthcare 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 BTC Health with a short position of Oneview Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTC Health and Oneview Healthcare.
Diversification Opportunities for BTC Health and Oneview Healthcare
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BTC and Oneview is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding BTC Health Limited and Oneview Healthcare PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oneview Healthcare PLC and BTC 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 BTC Health Limited are associated (or correlated) with Oneview Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oneview Healthcare PLC has no effect on the direction of BTC Health i.e., BTC Health and Oneview Healthcare go up and down completely randomly.
Pair Corralation between BTC Health and Oneview Healthcare
Assuming the 90 days trading horizon BTC Health is expected to generate 1.67 times less return on investment than Oneview Healthcare. But when comparing it to its historical volatility, BTC Health Limited is 1.03 times less risky than Oneview Healthcare. It trades about 0.04 of its potential returns per unit of risk. Oneview Healthcare PLC is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 13.00 in Oneview Healthcare PLC on August 29, 2024 and sell it today you would earn a total of 19.00 from holding Oneview Healthcare PLC or generate 146.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTC Health Limited vs. Oneview Healthcare PLC
Performance |
| Timeline |
| BTC Health Limited |
| Oneview Healthcare PLC |
BTC Health and Oneview Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTC Health and Oneview Healthcare
The main advantage of trading using opposite BTC Health and Oneview Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTC Health position performs unexpectedly, Oneview Healthcare 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 Oneview Healthcare will offset losses from the drop in Oneview Healthcare's long position.| BTC Health vs. Westpac Banking | BTC Health vs. Champion Iron | BTC Health vs. Ridley | BTC Health vs. Peel Mining |
| Oneview Healthcare vs. Westpac Banking | Oneview Healthcare vs. Champion Iron | Oneview Healthcare vs. Ridley | Oneview Healthcare vs. Peel Mining |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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