Correlation Between Global Health and Consolidated Construction
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By analyzing existing cross correlation between Global Health Limited and Consolidated Construction Consortium, you can compare the effects of market volatilities on Global Health and Consolidated Construction 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 Global Health with a short position of Consolidated Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Health and Consolidated Construction.
Diversification Opportunities for Global Health and Consolidated Construction
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Global and Consolidated is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Global Health Limited and Consolidated Construction Cons in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Consolidated Construction and Global Health 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 Global Health Limited are associated (or correlated) with Consolidated Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Consolidated Construction has no effect on the direction of Global Health i.e., Global Health and Consolidated Construction go up and down completely randomly.
Pair Corralation between Global Health and Consolidated Construction
Assuming the 90 days trading horizon Global Health Limited is expected to under-perform the Consolidated Construction. But the stock apears to be less risky and, when comparing its historical volatility, Global Health Limited is 2.02 times less risky than Consolidated Construction. The stock trades about -0.07 of its potential returns per unit of risk. The Consolidated Construction Consortium is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,844 in Consolidated Construction Consortium on September 1, 2024 and sell it today you would earn a total of 51.00 from holding Consolidated Construction Consortium or generate 2.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Health Limited vs. Consolidated Construction Cons
Performance |
| Timeline |
| Global Health Limited |
| Consolidated Construction |
Global Health and Consolidated Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Health and Consolidated Construction
The main advantage of trading using opposite Global Health and Consolidated Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Health position performs unexpectedly, Consolidated Construction 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 Consolidated Construction will offset losses from the drop in Consolidated Construction's long position.| Global Health vs. Healthcare Global Enterprises | Global Health vs. Indian Metals Ferro | Global Health vs. Entero Healthcare Solutions | Global Health vs. Sri Havisha Hospitality |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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