Correlation Between Hospital Mater and GP Investments
Can any of the company-specific risk be diversified away by investing in both Hospital Mater and GP Investments 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 GP Investments 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 GP Investments, you can compare the effects of market volatilities on Hospital Mater and GP Investments 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 GP Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hospital Mater and GP Investments.
Diversification Opportunities for Hospital Mater and GP Investments
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hospital and GPIV33 is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hospital Mater Dei and GP Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GP Investments 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 GP Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GP Investments has no effect on the direction of Hospital Mater i.e., Hospital Mater and GP Investments go up and down completely randomly.
Pair Corralation between Hospital Mater and GP Investments
Assuming the 90 days trading horizon Hospital Mater Dei is expected to under-perform the GP Investments. In addition to that, Hospital Mater is 1.37 times more volatile than GP Investments. It trades about -0.01 of its total potential returns per unit of risk. GP Investments is currently generating about 0.14 per unit of volatility. If you would invest 393.00 in GP Investments on October 23, 2024 and sell it today you would earn a total of 20.00 from holding GP Investments or generate 5.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hospital Mater Dei vs. GP Investments
Performance |
| Timeline |
| Hospital Mater Dei |
| GP Investments |
Hospital Mater and GP Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hospital Mater and GP Investments
The main advantage of trading using opposite Hospital Mater and GP Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hospital Mater position performs unexpectedly, GP Investments 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 GP Investments will offset losses from the drop in GP Investments' long position.| Hospital Mater vs. Paycom Software | Hospital Mater vs. Unity Software | Hospital Mater vs. BIONTECH SE DRN | Hospital Mater vs. Waste Management |
| GP Investments vs. Universal Health Services, | GP Investments vs. Take Two Interactive Software | GP Investments vs. Hospital Mater Dei | GP Investments vs. Tyson 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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