Correlation Between HUTCHISON TELECOMM and Advanced Medical
Can any of the company-specific risk be diversified away by investing in both HUTCHISON TELECOMM and Advanced Medical 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 HUTCHISON TELECOMM and Advanced Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HUTCHISON TELECOMM and Advanced Medical Solutions, you can compare the effects of market volatilities on HUTCHISON TELECOMM and Advanced Medical 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 HUTCHISON TELECOMM with a short position of Advanced Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUTCHISON TELECOMM and Advanced Medical.
Diversification Opportunities for HUTCHISON TELECOMM and Advanced Medical
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between HUTCHISON and Advanced is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding HUTCHISON TELECOMM and Advanced Medical Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Medical Sol and HUTCHISON TELECOMM 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 HUTCHISON TELECOMM are associated (or correlated) with Advanced Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Medical Sol has no effect on the direction of HUTCHISON TELECOMM i.e., HUTCHISON TELECOMM and Advanced Medical go up and down completely randomly.
Pair Corralation between HUTCHISON TELECOMM and Advanced Medical
Assuming the 90 days trading horizon HUTCHISON TELECOMM is expected to under-perform the Advanced Medical. In addition to that, HUTCHISON TELECOMM is 2.08 times more volatile than Advanced Medical Solutions. It trades about -0.01 of its total potential returns per unit of risk. Advanced Medical Solutions is currently generating about 0.0 per unit of volatility. If you would invest 277.00 in Advanced Medical Solutions on October 11, 2024 and sell it today you would lose (51.00) from holding Advanced Medical Solutions or give up 18.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUTCHISON TELECOMM vs. Advanced Medical Solutions
Performance |
| Timeline |
| HUTCHISON TELECOMM |
| Advanced Medical Sol |
HUTCHISON TELECOMM and Advanced Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUTCHISON TELECOMM and Advanced Medical
The main advantage of trading using opposite HUTCHISON TELECOMM and Advanced Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUTCHISON TELECOMM position performs unexpectedly, Advanced Medical 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 Advanced Medical will offset losses from the drop in Advanced Medical's long position.| HUTCHISON TELECOMM vs. ANGLO ASIAN MINING | HUTCHISON TELECOMM vs. Endeavour Mining PLC | HUTCHISON TELECOMM vs. Meiko Electronics Co | HUTCHISON TELECOMM vs. Globex Mining Enterprises |
| Advanced Medical vs. De Grey Mining | Advanced Medical vs. NXP Semiconductors NV | Advanced Medical vs. MINCO SILVER | Advanced Medical vs. Yanzhou Coal Mining |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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