Correlation Between Extendicare and Ramsay Health
Can any of the company-specific risk be diversified away by investing in both Extendicare and Ramsay 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 Extendicare and Ramsay Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Extendicare and Ramsay Health Care, you can compare the effects of market volatilities on Extendicare and Ramsay 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 Extendicare with a short position of Ramsay Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Extendicare and Ramsay Health.
Diversification Opportunities for Extendicare and Ramsay Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Extendicare and Ramsay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Extendicare and Ramsay Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramsay Health Care and Extendicare 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 Extendicare are associated (or correlated) with Ramsay Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramsay Health Care has no effect on the direction of Extendicare i.e., Extendicare and Ramsay Health go up and down completely randomly.
Pair Corralation between Extendicare and Ramsay Health
If you would invest 503.00 in Ramsay Health Care on November 29, 2024 and sell it today you would earn a total of 53.00 from holding Ramsay Health Care or generate 10.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Extendicare vs. Ramsay Health Care
Performance |
| Timeline |
| Extendicare |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| Ramsay Health Care |
Extendicare and Ramsay Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Extendicare and Ramsay Health
The main advantage of trading using opposite Extendicare and Ramsay Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Extendicare position performs unexpectedly, Ramsay 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 Ramsay Health will offset losses from the drop in Ramsay Health's long position.| Extendicare vs. Ramsay Health Care | Extendicare vs. Jack Nathan Medical | Extendicare vs. Nova Leap Health | Extendicare vs. Fresenius SE Co |
| Ramsay Health vs. Medical Facilities | Ramsay Health vs. Fresenius SE Co | Ramsay Health vs. Jack Nathan Medical | Ramsay Health vs. Nova Leap Health |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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