Correlation Between Gatos Silver and IHH Healthcare
Can any of the company-specific risk be diversified away by investing in both Gatos Silver and IHH 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 Gatos Silver and IHH Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gatos Silver and IHH Healthcare Berhad, you can compare the effects of market volatilities on Gatos Silver and IHH 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 Gatos Silver with a short position of IHH Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gatos Silver and IHH Healthcare.
Diversification Opportunities for Gatos Silver and IHH Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gatos and IHH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Gatos Silver and IHH Healthcare Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHH Healthcare Berhad and Gatos Silver 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 Gatos Silver are associated (or correlated) with IHH Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHH Healthcare Berhad has no effect on the direction of Gatos Silver i.e., Gatos Silver and IHH Healthcare go up and down completely randomly.
Pair Corralation between Gatos Silver and IHH Healthcare
If you would invest 1,394 in Gatos Silver on October 24, 2024 and sell it today you would earn a total of 46.00 from holding Gatos Silver or generate 3.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 6.25% |
| Values | Daily Returns |
Gatos Silver vs. IHH Healthcare Berhad
Performance |
| Timeline |
| Gatos Silver |
| IHH Healthcare Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Gatos Silver and IHH Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gatos Silver and IHH Healthcare
The main advantage of trading using opposite Gatos Silver and IHH Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gatos Silver position performs unexpectedly, IHH 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 IHH Healthcare will offset losses from the drop in IHH Healthcare's long position.| Gatos Silver vs. Endeavour Silver Corp | Gatos Silver vs. Metalla Royalty Streaming | Gatos Silver vs. New Pacific Metals | Gatos Silver vs. Hecla Mining |
| IHH Healthcare vs. WK Kellogg Co | IHH Healthcare vs. Ingredion Incorporated | IHH Healthcare vs. Kellanova | IHH Healthcare vs. Hertz Global Hldgs |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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