Correlation Between REVO INSURANCE and MEDICAL FACILITIES

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Can any of the company-specific risk be diversified away by investing in both REVO INSURANCE and MEDICAL FACILITIES 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 REVO INSURANCE and MEDICAL FACILITIES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between REVO INSURANCE SPA and MEDICAL FACILITIES NEW, you can compare the effects of market volatilities on REVO INSURANCE and MEDICAL FACILITIES 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 REVO INSURANCE with a short position of MEDICAL FACILITIES. Check out your portfolio center. Please also check ongoing floating volatility patterns of REVO INSURANCE and MEDICAL FACILITIES.

Diversification Opportunities for REVO INSURANCE and MEDICAL FACILITIES

REVOMEDICALDiversified AwayREVOMEDICALDiversified Away100%
0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between REVO and MEDICAL is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding REVO INSURANCE SPA and MEDICAL FACILITIES NEW in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICAL FACILITIES NEW and REVO INSURANCE 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 REVO INSURANCE SPA are associated (or correlated) with MEDICAL FACILITIES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICAL FACILITIES NEW has no effect on the direction of REVO INSURANCE i.e., REVO INSURANCE and MEDICAL FACILITIES go up and down completely randomly.

Pair Corralation between REVO INSURANCE and MEDICAL FACILITIES

Assuming the 90 days horizon REVO INSURANCE SPA is expected to generate 0.96 times more return on investment than MEDICAL FACILITIES. However, REVO INSURANCE SPA is 1.05 times less risky than MEDICAL FACILITIES. It trades about 0.07 of its potential returns per unit of risk. MEDICAL FACILITIES NEW is currently generating about 0.06 per unit of risk. If you would invest  1,060  in REVO INSURANCE SPA on November 26, 2024 and sell it today you would earn a total of  95.00  from holding REVO INSURANCE SPA or generate 8.96% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

REVO INSURANCE SPA  vs.  MEDICAL FACILITIES NEW

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0510152025
JavaScript chart by amCharts 3.21.15H0O 31F
       Timeline  
REVO INSURANCE SPA 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in REVO INSURANCE SPA are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, REVO INSURANCE may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb10.51111.51212.513
MEDICAL FACILITIES NEW 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in MEDICAL FACILITIES NEW are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, MEDICAL FACILITIES may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1010.51111.5

REVO INSURANCE and MEDICAL FACILITIES Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.19-5.39-3.58-1.770.01.793.685.567.459.33 0.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15H0O 31F
       Returns  

Pair Trading with REVO INSURANCE and MEDICAL FACILITIES

The main advantage of trading using opposite REVO INSURANCE and MEDICAL FACILITIES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if REVO INSURANCE position performs unexpectedly, MEDICAL FACILITIES 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 MEDICAL FACILITIES will offset losses from the drop in MEDICAL FACILITIES's long position.
The idea behind REVO INSURANCE SPA and MEDICAL FACILITIES NEW pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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