Correlation Between FEMALE HEALTH and WAGNERS HOLDING
Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH and WAGNERS HOLDING 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 FEMALE HEALTH and WAGNERS HOLDING into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and WAGNERS HOLDING LTD, you can compare the effects of market volatilities on FEMALE HEALTH and WAGNERS HOLDING 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 FEMALE HEALTH with a short position of WAGNERS HOLDING. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and WAGNERS HOLDING.
Diversification Opportunities for FEMALE HEALTH and WAGNERS HOLDING
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FEMALE and WAGNERS is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH and WAGNERS HOLDING LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WAGNERS HOLDING LTD and FEMALE HEALTH 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 FEMALE HEALTH are associated (or correlated) with WAGNERS HOLDING. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WAGNERS HOLDING LTD has no effect on the direction of FEMALE HEALTH i.e., FEMALE HEALTH and WAGNERS HOLDING go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and WAGNERS HOLDING
Assuming the 90 days trading horizon FEMALE HEALTH is expected to generate 4.99 times more return on investment than WAGNERS HOLDING. However, FEMALE HEALTH is 4.99 times more volatile than WAGNERS HOLDING LTD. It trades about 0.11 of its potential returns per unit of risk. WAGNERS HOLDING LTD is currently generating about 0.01 per unit of risk. If you would invest 68.00 in FEMALE HEALTH on October 17, 2024 and sell it today you would earn a total of 6.00 from holding FEMALE HEALTH or generate 8.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
FEMALE HEALTH vs. WAGNERS HOLDING LTD
Performance |
| Timeline |
| FEMALE HEALTH |
| WAGNERS HOLDING LTD |
FEMALE HEALTH and WAGNERS HOLDING Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and WAGNERS HOLDING
The main advantage of trading using opposite FEMALE HEALTH and WAGNERS HOLDING positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH position performs unexpectedly, WAGNERS HOLDING 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 WAGNERS HOLDING will offset losses from the drop in WAGNERS HOLDING's long position.| FEMALE HEALTH vs. Linedata Services SA | FEMALE HEALTH vs. Teradata Corp | FEMALE HEALTH vs. HANOVER INSURANCE | FEMALE HEALTH vs. United Insurance Holdings |
| WAGNERS HOLDING vs. Cairo Communication SpA | WAGNERS HOLDING vs. The Japan Steel | WAGNERS HOLDING vs. ALGOMA STEEL GROUP | WAGNERS HOLDING vs. Zoom Video Communications |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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