Correlation Between FISH PAYK and EHEALTH
Can any of the company-specific risk be diversified away by investing in both FISH PAYK and EHEALTH 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 EHEALTH 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 EHEALTH, you can compare the effects of market volatilities on FISH PAYK and EHEALTH 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 EHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of FISH PAYK and EHEALTH.
Diversification Opportunities for FISH PAYK and EHEALTH
Average diversification
The 3 months correlation between FISH and EHEALTH is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding FISH PAYK HEALTH and EHEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EHEALTH 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 EHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EHEALTH has no effect on the direction of FISH PAYK i.e., FISH PAYK and EHEALTH go up and down completely randomly.
Pair Corralation between FISH PAYK and EHEALTH
Assuming the 90 days trading horizon FISH PAYK HEALTH is expected to generate 0.47 times more return on investment than EHEALTH. However, FISH PAYK HEALTH is 2.14 times less risky than EHEALTH. It trades about 0.11 of its potential returns per unit of risk. EHEALTH is currently generating about 0.01 per unit of risk. If you would invest 1,647 in FISH PAYK HEALTH on September 1, 2024 and sell it today you would earn a total of 473.00 from holding FISH PAYK HEALTH or generate 28.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 99.24% |
| Values | Daily Returns |
FISH PAYK HEALTH vs. EHEALTH
Performance |
| Timeline |
| FISH PAYK HEALTH |
| EHEALTH |
FISH PAYK and EHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FISH PAYK and EHEALTH
The main advantage of trading using opposite FISH PAYK and EHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FISH PAYK position performs unexpectedly, EHEALTH 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 EHEALTH will offset losses from the drop in EHEALTH'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 |
| EHEALTH vs. SIVERS SEMICONDUCTORS AB | EHEALTH vs. Darden Restaurants | EHEALTH vs. Reliance Steel Aluminum | EHEALTH vs. Q2M Managementberatung AG |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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