Correlation Between BTC Health and Ramsay Health
Can any of the company-specific risk be diversified away by investing in both BTC Health and Ramsay 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 BTC Health and Ramsay Health 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 Ramsay Health Care, you can compare the effects of market volatilities on BTC Health and Ramsay 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 BTC Health with a short position of Ramsay Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTC Health and Ramsay Health.
Diversification Opportunities for BTC Health and Ramsay Health
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between BTC and Ramsay is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding BTC Health Limited and Ramsay Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramsay Health Care 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 Ramsay Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramsay Health Care has no effect on the direction of BTC Health i.e., BTC Health and Ramsay Health go up and down completely randomly.
Pair Corralation between BTC Health and Ramsay Health
Assuming the 90 days trading horizon BTC Health Limited is expected to generate 3.61 times more return on investment than Ramsay Health. However, BTC Health is 3.61 times more volatile than Ramsay Health Care. It trades about 0.04 of its potential returns per unit of risk. Ramsay Health Care is currently generating about -0.06 per unit of risk. If you would invest 4.10 in BTC Health Limited on August 29, 2024 and sell it today you would earn a total of 1.40 from holding BTC Health Limited or generate 34.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTC Health Limited vs. Ramsay Health Care
Performance |
| Timeline |
| BTC Health Limited |
| Ramsay Health Care |
BTC Health and Ramsay Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTC Health and Ramsay Health
The main advantage of trading using opposite BTC Health and Ramsay Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTC Health position performs unexpectedly, Ramsay 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 Ramsay Health will offset losses from the drop in Ramsay Health's long position.| BTC Health vs. Westpac Banking | BTC Health vs. Champion Iron | BTC Health vs. Ridley | BTC Health vs. Peel Mining |
| Ramsay Health vs. Aristocrat Leisure | Ramsay Health vs. Carawine Resources Limited | Ramsay Health vs. G8 Education | Ramsay Health vs. Black Rock 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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