Correlation Between Chemanex PLC and Singhe Hospitals
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By analyzing existing cross correlation between Chemanex PLC and Singhe Hospitals, you can compare the effects of market volatilities on Chemanex PLC and Singhe Hospitals 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 Chemanex PLC with a short position of Singhe Hospitals. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chemanex PLC and Singhe Hospitals.
Diversification Opportunities for Chemanex PLC and Singhe Hospitals
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chemanex and Singhe is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Chemanex PLC and Singhe Hospitals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singhe Hospitals and Chemanex PLC 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 Chemanex PLC are associated (or correlated) with Singhe Hospitals. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singhe Hospitals has no effect on the direction of Chemanex PLC i.e., Chemanex PLC and Singhe Hospitals go up and down completely randomly.
Pair Corralation between Chemanex PLC and Singhe Hospitals
Assuming the 90 days trading horizon Chemanex PLC is expected to generate 0.95 times more return on investment than Singhe Hospitals. However, Chemanex PLC is 1.06 times less risky than Singhe Hospitals. It trades about -0.05 of its potential returns per unit of risk. Singhe Hospitals is currently generating about -0.06 per unit of risk. If you would invest 8,960 in Chemanex PLC on August 31, 2024 and sell it today you would lose (260.00) from holding Chemanex PLC or give up 2.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 90.0% |
| Values | Daily Returns |
Chemanex PLC vs. Singhe Hospitals
Performance |
| Timeline |
| Chemanex PLC |
| Singhe Hospitals |
Chemanex PLC and Singhe Hospitals Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chemanex PLC and Singhe Hospitals
The main advantage of trading using opposite Chemanex PLC and Singhe Hospitals positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chemanex PLC position performs unexpectedly, Singhe Hospitals 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 Singhe Hospitals will offset losses from the drop in Singhe Hospitals' long position.| Chemanex PLC vs. HNB Finance | Chemanex PLC vs. Prime Lands Residencies | Chemanex PLC vs. Jat Holdings PLC | Chemanex PLC vs. E M L |
| Singhe Hospitals vs. Asiri Surgical Hospital | Singhe Hospitals vs. CEYLON HOSPITALS PLC | Singhe Hospitals vs. Ceylon Hospitals PLC | Singhe Hospitals vs. Chemanex PLC |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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