Correlation Between Gold Bond and MediPress Health
Can any of the company-specific risk be diversified away by investing in both Gold Bond 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 Gold Bond and MediPress Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between The Gold Bond and MediPress Health Limited Partnership, you can compare the effects of market volatilities on Gold Bond 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 Gold Bond with a short position of MediPress Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gold Bond and MediPress Health.
Diversification Opportunities for Gold Bond and MediPress Health
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gold and MediPress is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding The Gold Bond 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 Gold Bond 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 The Gold Bond 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 Gold Bond i.e., Gold Bond and MediPress Health go up and down completely randomly.
Pair Corralation between Gold Bond and MediPress Health
Assuming the 90 days trading horizon The Gold Bond is expected to generate 1.39 times more return on investment than MediPress Health. However, Gold Bond is 1.39 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 -0.14 per unit of risk. If you would invest 1,315,000 in The Gold Bond on August 25, 2024 and sell it today you would earn a total of 112,000 from holding The Gold Bond or generate 8.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 98.96% |
| Values | Daily Returns |
The Gold Bond vs. MediPress Health Limited Partn
Performance |
| Timeline |
| Gold Bond |
| MediPress Health Lim |
Gold Bond and MediPress Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gold Bond and MediPress Health
The main advantage of trading using opposite Gold Bond and MediPress Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gold Bond 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.| Gold Bond vs. Big Shopping Centers | Gold Bond vs. Al Bad Massuot Yitzhak | Gold Bond vs. Harel Insurance Investments | Gold Bond vs. Palram |
| MediPress Health vs. Nice | MediPress Health vs. The Gold Bond | MediPress Health vs. Bank Leumi Le Israel | MediPress Health vs. ICL Israel Chemicals |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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