Correlation Between Hansa Investment and HCA Healthcare
Can any of the company-specific risk be diversified away by investing in both Hansa Investment and HCA 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 Hansa Investment and HCA Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hansa Investment and HCA Healthcare, you can compare the effects of market volatilities on Hansa Investment and HCA 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 Hansa Investment with a short position of HCA Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hansa Investment and HCA Healthcare.
Diversification Opportunities for Hansa Investment and HCA Healthcare
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Hansa and HCA is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Hansa Investment and HCA Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HCA Healthcare and Hansa Investment 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 Hansa Investment are associated (or correlated) with HCA Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HCA Healthcare has no effect on the direction of Hansa Investment i.e., Hansa Investment and HCA Healthcare go up and down completely randomly.
Pair Corralation between Hansa Investment and HCA Healthcare
Assuming the 90 days trading horizon Hansa Investment is expected to generate 1.47 times more return on investment than HCA Healthcare. However, Hansa Investment is 1.47 times more volatile than HCA Healthcare. It trades about 0.09 of its potential returns per unit of risk. HCA Healthcare is currently generating about -0.43 per unit of risk. If you would invest 22,800 in Hansa Investment on September 15, 2024 and sell it today you would earn a total of 700.00 from holding Hansa Investment or generate 3.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hansa Investment vs. HCA Healthcare
Performance |
| Timeline |
| Hansa Investment |
| HCA Healthcare |
Hansa Investment and HCA Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hansa Investment and HCA Healthcare
The main advantage of trading using opposite Hansa Investment and HCA Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hansa Investment position performs unexpectedly, HCA 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 HCA Healthcare will offset losses from the drop in HCA Healthcare's long position.| Hansa Investment vs. CATCo Reinsurance Opportunities | Hansa Investment vs. BH Macro Limited | Hansa Investment vs. Legal General Group | Hansa Investment vs. TMT Investments PLC |
| HCA Healthcare vs. Kinnevik Investment AB | HCA Healthcare vs. Hansa Investment | HCA Healthcare vs. Bankers Investment Trust | HCA Healthcare vs. BE Semiconductor Industries |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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