Correlation Between Medical Properties and Applied Materials,
Can any of the company-specific risk be diversified away by investing in both Medical Properties and Applied Materials, 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 Medical Properties and Applied Materials, into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Medical Properties Trust, and Applied Materials,, you can compare the effects of market volatilities on Medical Properties and Applied Materials, 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 Medical Properties with a short position of Applied Materials,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Medical Properties and Applied Materials,.
Diversification Opportunities for Medical Properties and Applied Materials,
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Medical and Applied is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Medical Properties Trust, and Applied Materials, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Materials, and Medical Properties 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 Medical Properties Trust, are associated (or correlated) with Applied Materials,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Materials, has no effect on the direction of Medical Properties i.e., Medical Properties and Applied Materials, go up and down completely randomly.
Pair Corralation between Medical Properties and Applied Materials,
Assuming the 90 days trading horizon Medical Properties is expected to generate 1.7 times less return on investment than Applied Materials,. But when comparing it to its historical volatility, Medical Properties Trust, is 1.03 times less risky than Applied Materials,. It trades about 0.06 of its potential returns per unit of risk. Applied Materials, is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 10,178 in Applied Materials, on October 26, 2024 and sell it today you would earn a total of 1,056 from holding Applied Materials, or generate 10.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Medical Properties Trust, vs. Applied Materials,
Performance |
| Timeline |
| Medical Properties Trust, |
| Applied Materials, |
Medical Properties and Applied Materials, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Medical Properties and Applied Materials,
The main advantage of trading using opposite Medical Properties and Applied Materials, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Medical Properties position performs unexpectedly, Applied Materials, 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 Applied Materials, will offset losses from the drop in Applied Materials,'s long position.| Medical Properties vs. Ryanair Holdings plc | Medical Properties vs. SK Telecom Co, | Medical Properties vs. Unifique Telecomunicaes SA | Medical Properties vs. Marvell Technology |
| Applied Materials, vs. Alaska Air Group, | Applied Materials, vs. Zoom Video Communications | Applied Materials, vs. Telecomunicaes Brasileiras SA | Applied Materials, vs. Marfrig Global Foods |
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.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |