Correlation Between Everus Construction and IHH Healthcare
Can any of the company-specific risk be diversified away by investing in both Everus Construction and IHH Healthcare 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 Everus Construction and IHH Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Everus Construction Group and IHH Healthcare Berhad, you can compare the effects of market volatilities on Everus Construction and IHH Healthcare 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 Everus Construction with a short position of IHH Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Everus Construction and IHH Healthcare.
Diversification Opportunities for Everus Construction and IHH Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Everus and IHH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Everus Construction Group and IHH Healthcare Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHH Healthcare Berhad and Everus Construction 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 Everus Construction Group are associated (or correlated) with IHH Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHH Healthcare Berhad has no effect on the direction of Everus Construction i.e., Everus Construction and IHH Healthcare go up and down completely randomly.
Pair Corralation between Everus Construction and IHH Healthcare
Considering the 90-day investment horizon Everus Construction Group is expected to generate 2.43 times more return on investment than IHH Healthcare. However, Everus Construction is 2.43 times more volatile than IHH Healthcare Berhad. It trades about 0.28 of its potential returns per unit of risk. IHH Healthcare Berhad is currently generating about -0.01 per unit of risk. If you would invest 4,900 in Everus Construction Group on September 13, 2024 and sell it today you would earn a total of 1,883 from holding Everus Construction Group or generate 38.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 9.2% |
| Values | Daily Returns |
Everus Construction Group vs. IHH Healthcare Berhad
Performance |
| Timeline |
| Everus Construction |
| IHH Healthcare Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Everus Construction and IHH Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Everus Construction and IHH Healthcare
The main advantage of trading using opposite Everus Construction and IHH Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Everus Construction position performs unexpectedly, IHH Healthcare 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 IHH Healthcare will offset losses from the drop in IHH Healthcare's long position.| Everus Construction vs. Jacobs Solutions | Everus Construction vs. Dycom Industries | Everus Construction vs. Innovate Corp | Everus Construction vs. Energy Services |
| IHH Healthcare vs. Everus Construction Group | IHH Healthcare vs. Teleflex Incorporated | IHH Healthcare vs. Todos Medical | IHH Healthcare vs. Catalent |
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 CEOs Directory module to screen CEOs from public companies around the world.
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