Correlation Between Capitol Health and Retail Food
Can any of the company-specific risk be diversified away by investing in both Capitol Health and Retail Food 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 Capitol Health and Retail Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Capitol Health and Retail Food Group, you can compare the effects of market volatilities on Capitol Health and Retail Food 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 Capitol Health with a short position of Retail Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Capitol Health and Retail Food.
Diversification Opportunities for Capitol Health and Retail Food
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Capitol and Retail is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Capitol Health and Retail Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Food Group and Capitol 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 Capitol Health are associated (or correlated) with Retail Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Food Group has no effect on the direction of Capitol Health i.e., Capitol Health and Retail Food go up and down completely randomly.
Pair Corralation between Capitol Health and Retail Food
Assuming the 90 days trading horizon Capitol Health is expected to under-perform the Retail Food. But the stock apears to be less risky and, when comparing its historical volatility, Capitol Health is 1.19 times less risky than Retail Food. The stock trades about -0.14 of its potential returns per unit of risk. The Retail Food Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 6.60 in Retail Food Group on August 25, 2024 and sell it today you would earn a total of 0.60 from holding Retail Food Group or generate 9.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Capitol Health vs. Retail Food Group
Performance |
| Timeline |
| Capitol Health |
| Retail Food Group |
Capitol Health and Retail Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Capitol Health and Retail Food
The main advantage of trading using opposite Capitol Health and Retail Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Capitol Health position performs unexpectedly, Retail Food 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 Retail Food will offset losses from the drop in Retail Food's long position.| Capitol Health vs. Inventis | Capitol Health vs. PM Capital Global | Capitol Health vs. Macquarie Group Ltd | Capitol Health vs. Wam Leaders |
| Retail Food vs. Pioneer Credit | Retail Food vs. Beston Global Food | Retail Food vs. Actinogen Medical | Retail Food vs. Prime Financial Group |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |