Correlation Between FISH PAYK and SHIP HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both FISH PAYK and SHIP 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 FISH PAYK and SHIP HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FISH PAYK HEALTH and SHIP HEALTHCARE HLDGINC, you can compare the effects of market volatilities on FISH PAYK and SHIP 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 FISH PAYK with a short position of SHIP HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of FISH PAYK and SHIP HEALTHCARE.
Diversification Opportunities for FISH PAYK and SHIP HEALTHCARE
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FISH and SHIP is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding FISH PAYK HEALTH and SHIP HEALTHCARE HLDGINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHIP HEALTHCARE HLDGINC and FISH PAYK 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 FISH PAYK HEALTH are associated (or correlated) with SHIP HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHIP HEALTHCARE HLDGINC has no effect on the direction of FISH PAYK i.e., FISH PAYK and SHIP HEALTHCARE go up and down completely randomly.
Pair Corralation between FISH PAYK and SHIP HEALTHCARE
Assuming the 90 days trading horizon FISH PAYK HEALTH is expected to generate 0.62 times more return on investment than SHIP HEALTHCARE. However, FISH PAYK HEALTH is 1.61 times less risky than SHIP HEALTHCARE. It trades about 0.05 of its potential returns per unit of risk. SHIP HEALTHCARE HLDGINC is currently generating about 0.03 per unit of risk. If you would invest 1,473 in FISH PAYK HEALTH on September 1, 2024 and sell it today you would earn a total of 647.00 from holding FISH PAYK HEALTH or generate 43.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FISH PAYK HEALTH vs. SHIP HEALTHCARE HLDGINC
Performance |
| Timeline |
| FISH PAYK HEALTH |
| SHIP HEALTHCARE HLDGINC |
FISH PAYK and SHIP HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FISH PAYK and SHIP HEALTHCARE
The main advantage of trading using opposite FISH PAYK and SHIP HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FISH PAYK position performs unexpectedly, SHIP 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 SHIP HEALTHCARE will offset losses from the drop in SHIP HEALTHCARE's long position.| FISH PAYK vs. AIR PRODCHEMICALS | FISH PAYK vs. CAREER EDUCATION | FISH PAYK vs. National Beverage Corp | FISH PAYK vs. Calibre Mining Corp |
| SHIP HEALTHCARE vs. EVS Broadcast Equipment | SHIP HEALTHCARE vs. PARKEN Sport Entertainment | SHIP HEALTHCARE vs. PT Global Mediacom | SHIP HEALTHCARE vs. NTG Nordic Transport |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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