Correlation Between Hinto Energy and Global Healthcare
Can any of the company-specific risk be diversified away by investing in both Hinto Energy and Global 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 Hinto Energy and Global Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hinto Energy and Global Healthcare REIT, you can compare the effects of market volatilities on Hinto Energy and Global 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 Hinto Energy with a short position of Global Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hinto Energy and Global Healthcare.
Diversification Opportunities for Hinto Energy and Global Healthcare
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hinto and Global is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hinto Energy and Global Healthcare REIT in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Healthcare REIT and Hinto Energy 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 Hinto Energy are associated (or correlated) with Global Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Healthcare REIT has no effect on the direction of Hinto Energy i.e., Hinto Energy and Global Healthcare go up and down completely randomly.
Pair Corralation between Hinto Energy and Global Healthcare
Given the investment horizon of 90 days Hinto Energy is expected to under-perform the Global Healthcare. In addition to that, Hinto Energy is 1.42 times more volatile than Global Healthcare REIT. It trades about -0.25 of its total potential returns per unit of risk. Global Healthcare REIT is currently generating about 0.02 per unit of volatility. If you would invest 178.00 in Global Healthcare REIT on August 28, 2024 and sell it today you would lose (8.00) from holding Global Healthcare REIT or give up 4.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hinto Energy vs. Global Healthcare REIT
Performance |
| Timeline |
| Hinto Energy |
| Global Healthcare REIT |
Hinto Energy and Global Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hinto Energy and Global Healthcare
The main advantage of trading using opposite Hinto Energy and Global Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hinto Energy position performs unexpectedly, Global 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 Global Healthcare will offset losses from the drop in Global Healthcare's long position.| Hinto Energy vs. Gores Holdings IX | Hinto Energy vs. International Luxury Products | Hinto Energy vs. Cactus Acquisition Corp |
| Global Healthcare vs. Smart REIT | Global Healthcare vs. Phillips Edison Co | Global Healthcare vs. Simon Property Group | Global Healthcare vs. Inventrust Properties Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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