Correlation Between Carmat SA and Henry Schein
Can any of the company-specific risk be diversified away by investing in both Carmat SA and Henry Schein 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 Carmat SA and Henry Schein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Carmat SA and Henry Schein, you can compare the effects of market volatilities on Carmat SA and Henry Schein 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 Carmat SA with a short position of Henry Schein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carmat SA and Henry Schein.
Diversification Opportunities for Carmat SA and Henry Schein
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Carmat and Henry is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Carmat SA and Henry Schein in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henry Schein and Carmat SA 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 Carmat SA are associated (or correlated) with Henry Schein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henry Schein has no effect on the direction of Carmat SA i.e., Carmat SA and Henry Schein go up and down completely randomly.
Pair Corralation between Carmat SA and Henry Schein
Assuming the 90 days horizon Carmat SA is expected to under-perform the Henry Schein. In addition to that, Carmat SA is 2.02 times more volatile than Henry Schein. It trades about -0.21 of its total potential returns per unit of risk. Henry Schein is currently generating about 0.26 per unit of volatility. If you would invest 6,420 in Henry Schein on September 1, 2024 and sell it today you would earn a total of 904.00 from holding Henry Schein or generate 14.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Carmat SA vs. Henry Schein
Performance |
| Timeline |
| Carmat SA |
| Henry Schein |
Carmat SA and Henry Schein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Carmat SA and Henry Schein
The main advantage of trading using opposite Carmat SA and Henry Schein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carmat SA position performs unexpectedly, Henry Schein 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 Henry Schein will offset losses from the drop in Henry Schein's long position.| Carmat SA vs. National Retail Properties | Carmat SA vs. Sunstone Hotel Investors | Carmat SA vs. CARSALESCOM | Carmat SA vs. FAST RETAIL ADR |
| Henry Schein vs. Cardinal Health | Henry Schein vs. Shanghai Pharmaceuticals Holding | Henry Schein vs. Sinopharm Group Co | Henry Schein vs. SINOPHARM GROUP 15ON |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |