Correlation Between MAHLE Metal and HCA Healthcare,
Can any of the company-specific risk be diversified away by investing in both MAHLE Metal and HCA Healthcare, 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 MAHLE Metal and HCA Healthcare, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MAHLE Metal Leve and HCA Healthcare,, you can compare the effects of market volatilities on MAHLE Metal and HCA Healthcare, 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 MAHLE Metal with a short position of HCA Healthcare,. Check out your portfolio center. Please also check ongoing floating volatility patterns of MAHLE Metal and HCA Healthcare,.
Diversification Opportunities for MAHLE Metal and HCA Healthcare,
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MAHLE and HCA is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding MAHLE Metal Leve and HCA Healthcare, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HCA Healthcare, and MAHLE Metal 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 MAHLE Metal Leve are associated (or correlated) with HCA Healthcare,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HCA Healthcare, has no effect on the direction of MAHLE Metal i.e., MAHLE Metal and HCA Healthcare, go up and down completely randomly.
Pair Corralation between MAHLE Metal and HCA Healthcare,
Assuming the 90 days trading horizon MAHLE Metal Leve is expected to under-perform the HCA Healthcare,. In addition to that, MAHLE Metal is 1.12 times more volatile than HCA Healthcare,. It trades about -0.03 of its total potential returns per unit of risk. HCA Healthcare, is currently generating about 0.15 per unit of volatility. If you would invest 9,105 in HCA Healthcare, on October 25, 2024 and sell it today you would earn a total of 345.00 from holding HCA Healthcare, or generate 3.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MAHLE Metal Leve vs. HCA Healthcare,
Performance |
| Timeline |
| MAHLE Metal Leve |
| HCA Healthcare, |
MAHLE Metal and HCA Healthcare, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MAHLE Metal and HCA Healthcare,
The main advantage of trading using opposite MAHLE Metal and HCA Healthcare, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MAHLE Metal position performs unexpectedly, HCA Healthcare, 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 HCA Healthcare, will offset losses from the drop in HCA Healthcare,'s long position.| MAHLE Metal vs. Tupy SA | MAHLE Metal vs. Engie Brasil Energia | MAHLE Metal vs. Grendene SA | MAHLE Metal vs. M Dias Branco |
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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