Correlation Between Hospital Mater and Prologis
Can any of the company-specific risk be diversified away by investing in both Hospital Mater and Prologis 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 Prologis 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 Prologis, you can compare the effects of market volatilities on Hospital Mater and Prologis 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 Prologis. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hospital Mater and Prologis.
Diversification Opportunities for Hospital Mater and Prologis
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Hospital and Prologis is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Hospital Mater Dei and Prologis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prologis 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 Prologis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prologis has no effect on the direction of Hospital Mater i.e., Hospital Mater and Prologis go up and down completely randomly.
Pair Corralation between Hospital Mater and Prologis
Assuming the 90 days trading horizon Hospital Mater Dei is expected to under-perform the Prologis. In addition to that, Hospital Mater is 1.24 times more volatile than Prologis. It trades about -0.24 of its total potential returns per unit of risk. Prologis is currently generating about 0.04 per unit of volatility. If you would invest 5,563 in Prologis on September 14, 2024 and sell it today you would earn a total of 57.00 from holding Prologis or generate 1.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hospital Mater Dei vs. Prologis
Performance |
| Timeline |
| Hospital Mater Dei |
| Prologis |
Hospital Mater and Prologis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hospital Mater and Prologis
The main advantage of trading using opposite Hospital Mater and Prologis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hospital Mater position performs unexpectedly, Prologis 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 Prologis will offset losses from the drop in Prologis' long position.| Hospital Mater vs. Pet Center Comrcio | Hospital Mater vs. Hapvida Participaes e | Hospital Mater vs. Natura Co Holding | Hospital Mater vs. Banco BTG Pactual |
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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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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