Correlation Between Labiana Health and Urbas Grupo
Can any of the company-specific risk be diversified away by investing in both Labiana Health and Urbas Grupo 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 Labiana Health and Urbas Grupo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Labiana Health SA and Urbas Grupo Financiero, you can compare the effects of market volatilities on Labiana Health and Urbas Grupo 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 Labiana Health with a short position of Urbas Grupo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Labiana Health and Urbas Grupo.
Diversification Opportunities for Labiana Health and Urbas Grupo
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Labiana and Urbas is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Labiana Health SA and Urbas Grupo Financiero in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Urbas Grupo Financiero and Labiana 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 Labiana Health SA are associated (or correlated) with Urbas Grupo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Urbas Grupo Financiero has no effect on the direction of Labiana Health i.e., Labiana Health and Urbas Grupo go up and down completely randomly.
Pair Corralation between Labiana Health and Urbas Grupo
Assuming the 90 days trading horizon Labiana Health SA is expected to generate 0.87 times more return on investment than Urbas Grupo. However, Labiana Health SA is 1.15 times less risky than Urbas Grupo. It trades about -0.01 of its potential returns per unit of risk. Urbas Grupo Financiero is currently generating about -0.05 per unit of risk. If you would invest 312.00 in Labiana Health SA on September 12, 2024 and sell it today you would lose (112.00) from holding Labiana Health SA or give up 35.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.85% |
| Values | Daily Returns |
Labiana Health SA vs. Urbas Grupo Financiero
Performance |
| Timeline |
| Labiana Health SA |
| Urbas Grupo Financiero |
Labiana Health and Urbas Grupo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Labiana Health and Urbas Grupo
The main advantage of trading using opposite Labiana Health and Urbas Grupo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Labiana Health position performs unexpectedly, Urbas Grupo 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 Urbas Grupo will offset losses from the drop in Urbas Grupo's long position.| Labiana Health vs. Airbus Group SE | Labiana Health vs. Industria de Diseno | Labiana Health vs. Vale SA | Labiana Health vs. Iberdrola SA |
| Urbas Grupo vs. Labiana Health SA | Urbas Grupo vs. Vytrus Biotech SA | Urbas Grupo vs. Home Capital Rentals | Urbas Grupo vs. Borges Agricultural Industrial |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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