Correlation Between Hilton Food and Medical Properties
Can any of the company-specific risk be diversified away by investing in both Hilton Food and Medical Properties 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 Hilton Food and Medical Properties into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hilton Food Group and Medical Properties Trust, you can compare the effects of market volatilities on Hilton Food and Medical Properties 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 Hilton Food with a short position of Medical Properties. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Food and Medical Properties.
Diversification Opportunities for Hilton Food and Medical Properties
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hilton and Medical is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Food Group and Medical Properties Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Properties Trust and Hilton Food 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 Hilton Food Group are associated (or correlated) with Medical Properties. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Properties Trust has no effect on the direction of Hilton Food i.e., Hilton Food and Medical Properties go up and down completely randomly.
Pair Corralation between Hilton Food and Medical Properties
Assuming the 90 days trading horizon Hilton Food Group is expected to generate 0.43 times more return on investment than Medical Properties. However, Hilton Food Group is 2.33 times less risky than Medical Properties. It trades about -0.03 of its potential returns per unit of risk. Medical Properties Trust is currently generating about -0.03 per unit of risk. If you would invest 90,000 in Hilton Food Group on October 11, 2024 and sell it today you would lose (800.00) from holding Hilton Food Group or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hilton Food Group vs. Medical Properties Trust
Performance |
| Timeline |
| Hilton Food Group |
| Medical Properties Trust |
Hilton Food and Medical Properties Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilton Food and Medical Properties
The main advantage of trading using opposite Hilton Food and Medical Properties positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Food position performs unexpectedly, Medical Properties 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 Properties will offset losses from the drop in Medical Properties' long position.| Hilton Food vs. Ameriprise Financial | Hilton Food vs. FinecoBank SpA | Hilton Food vs. Orient Telecoms | Hilton Food vs. Cairo Communication SpA |
| Medical Properties vs. Livermore Investments Group | Medical Properties vs. Grieg Seafood | Medical Properties vs. Austevoll Seafood ASA | Medical Properties vs. Lords Grp Trading |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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