Correlation Between Discover Financial and WESANA HEALTH
Can any of the company-specific risk be diversified away by investing in both Discover Financial and WESANA 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 Discover Financial and WESANA HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Discover Financial Services and WESANA HEALTH HOLD, you can compare the effects of market volatilities on Discover Financial and WESANA 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 Discover Financial with a short position of WESANA HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Discover Financial and WESANA HEALTH.
Diversification Opportunities for Discover Financial and WESANA HEALTH
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Discover and WESANA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Discover Financial Services and WESANA HEALTH HOLD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESANA HEALTH HOLD and Discover Financial 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 Discover Financial Services are associated (or correlated) with WESANA HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESANA HEALTH HOLD has no effect on the direction of Discover Financial i.e., Discover Financial and WESANA HEALTH go up and down completely randomly.
Pair Corralation between Discover Financial and WESANA HEALTH
If you would invest 16,780 in Discover Financial Services on October 25, 2024 and sell it today you would earn a total of 1,352 from holding Discover Financial Services or generate 8.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Discover Financial Services vs. WESANA HEALTH HOLD
Performance |
| Timeline |
| Discover Financial |
| WESANA HEALTH HOLD |
Discover Financial and WESANA HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Discover Financial and WESANA HEALTH
The main advantage of trading using opposite Discover Financial and WESANA HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Discover Financial position performs unexpectedly, WESANA 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 WESANA HEALTH will offset losses from the drop in WESANA HEALTH's long position.| Discover Financial vs. ANGANG STEEL H | Discover Financial vs. CVR Medical Corp | Discover Financial vs. MAANSHAN IRON H | Discover Financial vs. Inspire Medical Systems |
| WESANA HEALTH vs. Wayside Technology Group | WESANA HEALTH vs. Vishay Intertechnology | WESANA HEALTH vs. Casio Computer CoLtd | WESANA HEALTH vs. Kingdee International Software |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |