Correlation Between JD Health and Veltex
Can any of the company-specific risk be diversified away by investing in both JD Health and Veltex 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 JD Health and Veltex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between JD Health International and Veltex, you can compare the effects of market volatilities on JD Health and Veltex 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 JD Health with a short position of Veltex. Check out your portfolio center. Please also check ongoing floating volatility patterns of JD Health and Veltex.
Diversification Opportunities for JD Health and Veltex
Excellent diversification
The 3 months correlation between JDHIY and Veltex is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding JD Health International and Veltex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Veltex and JD Health 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 JD Health International are associated (or correlated) with Veltex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Veltex has no effect on the direction of JD Health i.e., JD Health and Veltex go up and down completely randomly.
Pair Corralation between JD Health and Veltex
If you would invest 381.00 in JD Health International on October 16, 2024 and sell it today you would earn a total of 0.00 from holding JD Health International or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
JD Health International vs. Veltex
Performance |
| Timeline |
| JD Health International |
| Veltex |
JD Health and Veltex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JD Health and Veltex
The main advantage of trading using opposite JD Health and Veltex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JD Health position performs unexpectedly, Veltex 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 Veltex will offset losses from the drop in Veltex's long position.| JD Health vs. Medical Facilities | JD Health vs. Sienna Senior Living | JD Health vs. Regional Health Properties | JD Health vs. WashTec AG |
| Veltex vs. Concord Medical Services | Veltex vs. American Shared Hospital | Veltex vs. Sonida Senior Living | Veltex vs. Oncology Institute |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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