Correlation Between Hospital Mater and Fras Le
Can any of the company-specific risk be diversified away by investing in both Hospital Mater and Fras Le 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 Fras Le 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 Fras le SA, you can compare the effects of market volatilities on Hospital Mater and Fras Le 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 Fras Le. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hospital Mater and Fras Le.
Diversification Opportunities for Hospital Mater and Fras Le
-0.62 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Hospital and Fras is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Hospital Mater Dei and Fras le SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fras le SA 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 Fras Le. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fras le SA has no effect on the direction of Hospital Mater i.e., Hospital Mater and Fras Le go up and down completely randomly.
Pair Corralation between Hospital Mater and Fras Le
Assuming the 90 days trading horizon Hospital Mater Dei is expected to generate 1.53 times more return on investment than Fras Le. However, Hospital Mater is 1.53 times more volatile than Fras le SA. It trades about 0.04 of its potential returns per unit of risk. Fras le SA is currently generating about -0.24 per unit of risk. If you would invest 418.00 in Hospital Mater Dei on August 26, 2024 and sell it today you would earn a total of 6.00 from holding Hospital Mater Dei or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hospital Mater Dei vs. Fras le SA
Performance |
| Timeline |
| Hospital Mater Dei |
| Fras le SA |
Hospital Mater and Fras Le Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hospital Mater and Fras Le
The main advantage of trading using opposite Hospital Mater and Fras Le positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hospital Mater position performs unexpectedly, Fras Le 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 Fras Le will offset losses from the drop in Fras Le's long position.| Hospital Mater vs. Fras le SA | Hospital Mater vs. Western Digital | Hospital Mater vs. Clave Indices De | Hospital Mater vs. BTG Pactual Logstica |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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