Correlation Between FEMALE HEALTH and MEDICAL FACILITIES
Can any of the company-specific risk be diversified away by investing in both FEMALE HEALTH and MEDICAL FACILITIES 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 MEDICAL FACILITIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FEMALE HEALTH and MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on FEMALE HEALTH and MEDICAL FACILITIES 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 MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of FEMALE HEALTH and MEDICAL FACILITIES.
Diversification Opportunities for FEMALE HEALTH and MEDICAL FACILITIES
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FEMALE and MEDICAL is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding FEMALE HEALTH and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW 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 MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of FEMALE HEALTH i.e., FEMALE HEALTH and MEDICAL FACILITIES go up and down completely randomly.
Pair Corralation between FEMALE HEALTH and MEDICAL FACILITIES
Assuming the 90 days trading horizon FEMALE HEALTH is expected to generate 3.22 times less return on investment than MEDICAL FACILITIES. In addition to that, FEMALE HEALTH is 2.36 times more volatile than MEDICAL FACILITIES NEW. It trades about 0.01 of its total potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.08 per unit of volatility. If you would invest 568.00 in MEDICAL FACILITIES NEW on December 7, 2024 and sell it today you would earn a total of 542.00 from holding MEDICAL FACILITIES NEW or generate 95.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FEMALE HEALTH vs. MEDICAL FACILITIES NEW
Performance |
| Timeline |
| FEMALE HEALTH |
| MEDICAL FACILITIES NEW |
FEMALE HEALTH and MEDICAL FACILITIES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FEMALE HEALTH and MEDICAL FACILITIES
The main advantage of trading using opposite FEMALE HEALTH and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FEMALE HEALTH position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.| FEMALE HEALTH vs. LINMON MEDIA LTD | FEMALE HEALTH vs. Emperor Entertainment Hotel | FEMALE HEALTH vs. Axway Software SA | FEMALE HEALTH vs. Take Two Interactive Software |
| MEDICAL FACILITIES vs. Commercial Vehicle Group | MEDICAL FACILITIES vs. GRUPO CARSO A1 | MEDICAL FACILITIES vs. ARDAGH METAL PACDL 0001 | MEDICAL FACILITIES vs. Grupo Carso SAB |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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