Correlation Between Global Health and Retail Food
Can any of the company-specific risk be diversified away by investing in both Global Health and Retail Food 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 Global Health and Retail Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Health and Retail Food Group, you can compare the effects of market volatilities on Global Health and Retail Food 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 Global Health with a short position of Retail Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Health and Retail Food.
Diversification Opportunities for Global Health and Retail Food
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Global and Retail is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding Global Health and Retail Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Food Group and Global 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 Global Health are associated (or correlated) with Retail Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Food Group has no effect on the direction of Global Health i.e., Global Health and Retail Food go up and down completely randomly.
Pair Corralation between Global Health and Retail Food
Assuming the 90 days trading horizon Global Health is expected to generate 2.25 times more return on investment than Retail Food. However, Global Health is 2.25 times more volatile than Retail Food Group. It trades about 0.13 of its potential returns per unit of risk. Retail Food Group is currently generating about -0.09 per unit of risk. If you would invest 13.00 in Global Health on September 19, 2024 and sell it today you would earn a total of 1.00 from holding Global Health or generate 7.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Health vs. Retail Food Group
Performance |
| Timeline |
| Global Health |
| Retail Food Group |
Global Health and Retail Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Health and Retail Food
The main advantage of trading using opposite Global Health and Retail Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Health position performs unexpectedly, Retail Food 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 Retail Food will offset losses from the drop in Retail Food's long position.| Global Health vs. Environmental Clean Technologies | Global Health vs. Charter Hall Retail | Global Health vs. Australian Strategic Materials | Global Health vs. MFF Capital Investments |
| Retail Food vs. Auswide Bank | Retail Food vs. MA Financial Group | Retail Food vs. Healthco Healthcare and | Retail Food vs. Global Health |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |