Correlation Between Check Point and Hospital Mater
Can any of the company-specific risk be diversified away by investing in both Check Point and Hospital Mater 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 Check Point and Hospital Mater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Check Point Software and Hospital Mater Dei, you can compare the effects of market volatilities on Check Point and Hospital Mater 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 Check Point with a short position of Hospital Mater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Check Point and Hospital Mater.
Diversification Opportunities for Check Point and Hospital Mater
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Check and Hospital is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Check Point Software and Hospital Mater Dei in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hospital Mater Dei and Check Point 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 Check Point Software are associated (or correlated) with Hospital Mater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hospital Mater Dei has no effect on the direction of Check Point i.e., Check Point and Hospital Mater go up and down completely randomly.
Pair Corralation between Check Point and Hospital Mater
Assuming the 90 days trading horizon Check Point Software is expected to generate 0.74 times more return on investment than Hospital Mater. However, Check Point Software is 1.35 times less risky than Hospital Mater. It trades about 0.15 of its potential returns per unit of risk. Hospital Mater Dei is currently generating about -0.07 per unit of risk. If you would invest 33,766 in Check Point Software on November 3, 2024 and sell it today you would earn a total of 29,726 from holding Check Point Software or generate 88.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 99.2% |
| Values | Daily Returns |
Check Point Software vs. Hospital Mater Dei
Performance |
| Timeline |
| Check Point Software |
| Hospital Mater Dei |
Check Point and Hospital Mater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Check Point and Hospital Mater
The main advantage of trading using opposite Check Point and Hospital Mater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Check Point position performs unexpectedly, Hospital Mater 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 Hospital Mater will offset losses from the drop in Hospital Mater's long position.| Check Point vs. Zoom Video Communications | Check Point vs. MAHLE Metal Leve | Check Point vs. Hospital Mater Dei | Check Point vs. CM Hospitalar SA |
| Hospital Mater vs. Clover Health Investments, | Hospital Mater vs. T Mobile | Hospital Mater vs. Bemobi Mobile Tech | Hospital Mater vs. United Rentals |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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