Correlation Between HEALTHSTREAM (HL5SG) and SIKA AG
Can any of the company-specific risk be diversified away by investing in both HEALTHSTREAM (HL5SG) and SIKA AG 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 HEALTHSTREAM (HL5SG) and SIKA AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEALTHSTREAM and SIKA AG UNSPADR, you can compare the effects of market volatilities on HEALTHSTREAM (HL5SG) and SIKA AG 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 HEALTHSTREAM (HL5SG) with a short position of SIKA AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEALTHSTREAM (HL5SG) and SIKA AG.
Diversification Opportunities for HEALTHSTREAM (HL5SG) and SIKA AG
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between HEALTHSTREAM and SIKA is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding HEALTHSTREAM and SIKA AG UNSPADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SIKA AG UNSPADR and HEALTHSTREAM (HL5SG) 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 HEALTHSTREAM are associated (or correlated) with SIKA AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SIKA AG UNSPADR has no effect on the direction of HEALTHSTREAM (HL5SG) i.e., HEALTHSTREAM (HL5SG) and SIKA AG go up and down completely randomly.
Pair Corralation between HEALTHSTREAM (HL5SG) and SIKA AG
Assuming the 90 days trading horizon HEALTHSTREAM is expected to generate 0.89 times more return on investment than SIKA AG. However, HEALTHSTREAM is 1.12 times less risky than SIKA AG. It trades about 0.11 of its potential returns per unit of risk. SIKA AG UNSPADR is currently generating about -0.03 per unit of risk. If you would invest 2,312 in HEALTHSTREAM on November 7, 2024 and sell it today you would earn a total of 868.00 from holding HEALTHSTREAM or generate 37.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HEALTHSTREAM vs. SIKA AG UNSPADR
Performance |
| Timeline |
| HEALTHSTREAM (HL5SG) |
| SIKA AG UNSPADR |
HEALTHSTREAM (HL5SG) and SIKA AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEALTHSTREAM (HL5SG) and SIKA AG
The main advantage of trading using opposite HEALTHSTREAM (HL5SG) and SIKA AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEALTHSTREAM (HL5SG) position performs unexpectedly, SIKA AG 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 SIKA AG will offset losses from the drop in SIKA AG's long position.| HEALTHSTREAM (HL5SG) vs. CHIBA BANK | HEALTHSTREAM (HL5SG) vs. China Communications Services | HEALTHSTREAM (HL5SG) vs. Carnegie Clean Energy | HEALTHSTREAM (HL5SG) vs. TELECOM ITALRISP ADR10 |
| SIKA AG vs. BII Railway Transportation | SIKA AG vs. PLAYMATES TOYS | SIKA AG vs. PARKEN Sport Entertainment | SIKA AG vs. Yuexiu Transport Infrastructure |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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