Correlation Between IHH Healthcare and Ramsay Health
Can any of the company-specific risk be diversified away by investing in both IHH Healthcare and Ramsay Health 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 IHH Healthcare and Ramsay Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHH Healthcare Berhad and Ramsay Health Care, you can compare the effects of market volatilities on IHH Healthcare and Ramsay Health 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 IHH Healthcare with a short position of Ramsay Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHH Healthcare and Ramsay Health.
Diversification Opportunities for IHH Healthcare and Ramsay Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IHH and Ramsay is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IHH Healthcare Berhad and Ramsay Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ramsay Health Care and IHH 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 IHH Healthcare Berhad are associated (or correlated) with Ramsay Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ramsay Health Care has no effect on the direction of IHH Healthcare i.e., IHH Healthcare and Ramsay Health go up and down completely randomly.
Pair Corralation between IHH Healthcare and Ramsay Health
Assuming the 90 days horizon IHH Healthcare Berhad is expected to generate 0.15 times more return on investment than Ramsay Health. However, IHH Healthcare Berhad is 6.46 times less risky than Ramsay Health. It trades about 0.03 of its potential returns per unit of risk. Ramsay Health Care is currently generating about 0.0 per unit of risk. If you would invest 116.00 in IHH Healthcare Berhad on September 4, 2024 and sell it today you would earn a total of 3.00 from holding IHH Healthcare Berhad or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 70.93% |
| Values | Daily Returns |
IHH Healthcare Berhad vs. Ramsay Health Care
Performance |
| Timeline |
| IHH Healthcare Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Ramsay Health Care |
IHH Healthcare and Ramsay Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IHH Healthcare and Ramsay Health
The main advantage of trading using opposite IHH Healthcare and Ramsay Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHH Healthcare position performs unexpectedly, Ramsay Health 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 Ramsay Health will offset losses from the drop in Ramsay Health's long position.| IHH Healthcare vs. Tower Semiconductor | IHH Healthcare vs. Entegris | IHH Healthcare vs. Analog Devices | IHH Healthcare vs. Elmos Semiconductor SE |
| Ramsay Health vs. Medical Facilities | Ramsay Health vs. Fresenius SE Co | Ramsay Health vs. Jack Nathan Medical | Ramsay Health vs. Nova Leap Health |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |