Correlation Between Identi Healthcare and Holmes Place
Can any of the company-specific risk be diversified away by investing in both Identi Healthcare and Holmes Place 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 Identi Healthcare and Holmes Place into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identi Healthcare and Holmes Place International, you can compare the effects of market volatilities on Identi Healthcare and Holmes Place 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 Identi Healthcare with a short position of Holmes Place. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identi Healthcare and Holmes Place.
Diversification Opportunities for Identi Healthcare and Holmes Place
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Identi and Holmes is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Identi Healthcare and Holmes Place International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Holmes Place Interna and Identi Healthcare 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 Identi Healthcare are associated (or correlated) with Holmes Place. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Holmes Place Interna has no effect on the direction of Identi Healthcare i.e., Identi Healthcare and Holmes Place go up and down completely randomly.
Pair Corralation between Identi Healthcare and Holmes Place
Assuming the 90 days trading horizon Identi Healthcare is expected to under-perform the Holmes Place. In addition to that, Identi Healthcare is 1.17 times more volatile than Holmes Place International. It trades about -0.57 of its total potential returns per unit of risk. Holmes Place International is currently generating about 0.15 per unit of volatility. 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 |
Identi Healthcare vs. Holmes Place International
Performance |
| Timeline |
| Identi Healthcare |
| Holmes Place Interna |
Identi Healthcare and Holmes Place Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identi Healthcare and Holmes Place
The main advantage of trading using opposite Identi Healthcare and Holmes Place positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identi Healthcare position performs unexpectedly, Holmes Place 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 Holmes Place will offset losses from the drop in Holmes Place's long position.| Identi Healthcare vs. IDI Insurance | Identi Healthcare vs. Victory Supermarket Chain | Identi Healthcare vs. Ilex Medical | Identi Healthcare vs. Payment Financial Technologies |
| Holmes Place vs. Fattal 1998 Holdings | Holmes Place vs. Delek Group | Holmes Place vs. Bank Leumi Le Israel | Holmes Place vs. Matrix |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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