Correlation Between Holmes Place and Identi Healthcare
Can any of the company-specific risk be diversified away by investing in both Holmes Place and Identi 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 Holmes Place and Identi Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Holmes Place International and Identi Healthcare, you can compare the effects of market volatilities on Holmes Place and Identi 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 Holmes Place with a short position of Identi Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Holmes Place and Identi Healthcare.
Diversification Opportunities for Holmes Place and Identi Healthcare
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Holmes and Identi is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Holmes Place International and Identi Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identi Healthcare and Holmes Place 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 Holmes Place International are associated (or correlated) with Identi Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identi Healthcare has no effect on the direction of Holmes Place i.e., Holmes Place and Identi Healthcare go up and down completely randomly.
Pair Corralation between Holmes Place and Identi Healthcare
Assuming the 90 days trading horizon Holmes Place International is expected to generate 0.86 times more return on investment than Identi Healthcare. However, Holmes Place International is 1.17 times less risky than Identi Healthcare. It trades about 0.15 of its potential returns per unit of risk. Identi Healthcare is currently generating about -0.57 per unit of risk. If you would invest 52,410 in Holmes Place International on September 1, 2024 and sell it today you would earn a total of 3,560 from holding Holmes Place International or generate 6.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Holmes Place International vs. Identi Healthcare
Performance |
| Timeline |
| Holmes Place Interna |
| Identi Healthcare |
Holmes Place and Identi Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Holmes Place and Identi Healthcare
The main advantage of trading using opposite Holmes Place and Identi Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Holmes Place position performs unexpectedly, Identi 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 Identi Healthcare will offset losses from the drop in Identi Healthcare's long position.| Holmes Place vs. Fattal 1998 Holdings | Holmes Place vs. Delek Group | Holmes Place vs. Bank Leumi Le Israel | Holmes Place vs. Matrix |
| Identi Healthcare vs. IDI Insurance | Identi Healthcare vs. Victory Supermarket Chain | Identi Healthcare vs. Ilex Medical | Identi Healthcare vs. Payment Financial Technologies |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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