Correlation Between FIDSON HEALTHCARE and TRANSCORP HOTELS
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By analyzing existing cross correlation between FIDSON HEALTHCARE PLC and TRANSCORP HOTELS PLC, you can compare the effects of market volatilities on FIDSON HEALTHCARE and TRANSCORP HOTELS 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 FIDSON HEALTHCARE with a short position of TRANSCORP HOTELS. Check out your portfolio center. Please also check ongoing floating volatility patterns of FIDSON HEALTHCARE and TRANSCORP HOTELS.
Diversification Opportunities for FIDSON HEALTHCARE and TRANSCORP HOTELS
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between FIDSON and TRANSCORP is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding FIDSON HEALTHCARE PLC and TRANSCORP HOTELS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRANSCORP HOTELS PLC and FIDSON HEALTHCARE 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 FIDSON HEALTHCARE PLC are associated (or correlated) with TRANSCORP HOTELS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRANSCORP HOTELS PLC has no effect on the direction of FIDSON HEALTHCARE i.e., FIDSON HEALTHCARE and TRANSCORP HOTELS go up and down completely randomly.
Pair Corralation between FIDSON HEALTHCARE and TRANSCORP HOTELS
Assuming the 90 days trading horizon FIDSON HEALTHCARE PLC is expected to generate 0.59 times more return on investment than TRANSCORP HOTELS. However, FIDSON HEALTHCARE PLC is 1.69 times less risky than TRANSCORP HOTELS. It trades about 0.07 of its potential returns per unit of risk. TRANSCORP HOTELS PLC is currently generating about 0.0 per unit of risk. If you would invest 1,640 in FIDSON HEALTHCARE PLC on November 5, 2024 and sell it today you would earn a total of 40.00 from holding FIDSON HEALTHCARE PLC or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FIDSON HEALTHCARE PLC vs. TRANSCORP HOTELS PLC
Performance |
| Timeline |
| FIDSON HEALTHCARE PLC |
| TRANSCORP HOTELS PLC |
FIDSON HEALTHCARE and TRANSCORP HOTELS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FIDSON HEALTHCARE and TRANSCORP HOTELS
The main advantage of trading using opposite FIDSON HEALTHCARE and TRANSCORP HOTELS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FIDSON HEALTHCARE position performs unexpectedly, TRANSCORP HOTELS 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 TRANSCORP HOTELS will offset losses from the drop in TRANSCORP HOTELS's long position.| FIDSON HEALTHCARE vs. GOLDLINK INSURANCE PLC | FIDSON HEALTHCARE vs. INTERNATIONAL BREWERIES PLC | FIDSON HEALTHCARE vs. MULTI TREX INTEGRATED FOODS | FIDSON HEALTHCARE vs. BUA FOODS PLC |
| TRANSCORP HOTELS vs. GUINEA INSURANCE PLC | TRANSCORP HOTELS vs. SECURE ELECTRONIC TECHNOLOGY | TRANSCORP HOTELS vs. VFD GROUP | TRANSCORP HOTELS vs. IKEJA HOTELS 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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