Correlation Between Glassbox and MediPress Health
Can any of the company-specific risk be diversified away by investing in both Glassbox and MediPress Health 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 Glassbox and MediPress Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Glassbox and MediPress Health Limited Partnership, you can compare the effects of market volatilities on Glassbox and MediPress Health 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 Glassbox with a short position of MediPress Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Glassbox and MediPress Health.
Diversification Opportunities for Glassbox and MediPress Health
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Glassbox and MediPress is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Glassbox and MediPress Health Limited Partn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MediPress Health Lim and Glassbox 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 Glassbox are associated (or correlated) with MediPress Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MediPress Health Lim has no effect on the direction of Glassbox i.e., Glassbox and MediPress Health go up and down completely randomly.
Pair Corralation between Glassbox and MediPress Health
Assuming the 90 days trading horizon Glassbox is expected to generate 1.4 times more return on investment than MediPress Health. However, Glassbox is 1.4 times more volatile than MediPress Health Limited Partnership. It trades about 0.05 of its potential returns per unit of risk. MediPress Health Limited Partnership is currently generating about -0.06 per unit of risk. If you would invest 351,300 in Glassbox on September 1, 2024 and sell it today you would earn a total of 54,600 from holding Glassbox or generate 15.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.07% |
| Values | Daily Returns |
Glassbox vs. MediPress Health Limited Partn
Performance |
| Timeline |
| Glassbox |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Modest
| MediPress Health Lim |
Glassbox and MediPress Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Glassbox and MediPress Health
The main advantage of trading using opposite Glassbox and MediPress Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Glassbox position performs unexpectedly, MediPress Health 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 MediPress Health will offset losses from the drop in MediPress Health's long position.| Glassbox vs. Bio Meat Foodtech | Glassbox vs. Scope Metals Group | Glassbox vs. Alrov Properties Lodgings | Glassbox vs. Israel China Biotechnology |
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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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