Correlation Between Hospital Mater and Amazon
Can any of the company-specific risk be diversified away by investing in both Hospital Mater and Amazon 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 Hospital Mater and Amazon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hospital Mater Dei and Amazon Inc, you can compare the effects of market volatilities on Hospital Mater and Amazon 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 Hospital Mater with a short position of Amazon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hospital Mater and Amazon.
Diversification Opportunities for Hospital Mater and Amazon
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hospital and Amazon is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hospital Mater Dei and Amazon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amazon Inc and Hospital Mater 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 Hospital Mater Dei are associated (or correlated) with Amazon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amazon Inc has no effect on the direction of Hospital Mater i.e., Hospital Mater and Amazon go up and down completely randomly.
Pair Corralation between Hospital Mater and Amazon
Assuming the 90 days trading horizon Hospital Mater Dei is expected to under-perform the Amazon. In addition to that, Hospital Mater is 1.82 times more volatile than Amazon Inc. It trades about -0.2 of its total potential returns per unit of risk. Amazon Inc is currently generating about -0.09 per unit of volatility. If you would invest 6,870 in Amazon Inc on October 12, 2024 and sell it today you would lose (189.00) from holding Amazon Inc or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hospital Mater Dei vs. Amazon Inc
Performance |
| Timeline |
| Hospital Mater Dei |
| Amazon Inc |
Hospital Mater and Amazon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hospital Mater and Amazon
The main advantage of trading using opposite Hospital Mater and Amazon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hospital Mater position performs unexpectedly, Amazon 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 Amazon will offset losses from the drop in Amazon's long position.| Hospital Mater vs. Waste Management | Hospital Mater vs. Multilaser Industrial SA | Hospital Mater vs. STAG Industrial, | Hospital Mater vs. Nordon Indstrias Metalrgicas |
| Amazon vs. American Airlines Group | Amazon vs. Beyond Meat | Amazon vs. Marfrig Global Foods | Amazon vs. Hospital Mater Dei |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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