Correlation Between Identi Healthcare and Photomyne
Can any of the company-specific risk be diversified away by investing in both Identi Healthcare and Photomyne 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 Photomyne into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Identi Healthcare and Photomyne, you can compare the effects of market volatilities on Identi Healthcare and Photomyne 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 Photomyne. Check out your portfolio center. Please also check ongoing floating volatility patterns of Identi Healthcare and Photomyne.
Diversification Opportunities for Identi Healthcare and Photomyne
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Identi and Photomyne is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Identi Healthcare and Photomyne in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Photomyne 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 Photomyne. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Photomyne has no effect on the direction of Identi Healthcare i.e., Identi Healthcare and Photomyne go up and down completely randomly.
Pair Corralation between Identi Healthcare and Photomyne
Assuming the 90 days trading horizon Identi Healthcare is expected to generate 3.12 times more return on investment than Photomyne. However, Identi Healthcare is 3.12 times more volatile than Photomyne. It trades about 0.03 of its potential returns per unit of risk. Photomyne is currently generating about 0.06 per unit of risk. If you would invest 37,160 in Identi Healthcare on November 27, 2024 and sell it today you would lose (2,600) from holding Identi Healthcare or give up 7.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Identi Healthcare vs. Photomyne
Performance |
| Timeline |
| Identi Healthcare |
| Photomyne |
Identi Healthcare and Photomyne Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Identi Healthcare and Photomyne
The main advantage of trading using opposite Identi Healthcare and Photomyne positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Identi Healthcare position performs unexpectedly, Photomyne 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 Photomyne will offset losses from the drop in Photomyne's long position.| Identi Healthcare vs. Iargento Hi Tech | Identi Healthcare vs. Sure Tech Investments LP | Identi Healthcare vs. Insuline Medical | Identi Healthcare vs. Sarine Technologies |
| Photomyne vs. Harel Insurance Investments | Photomyne vs. Meitav Dash Investments | Photomyne vs. Scope Metals Group | Photomyne vs. Amot Investments |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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