Correlation Between Global Health and HEG
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By analyzing existing cross correlation between Global Health Limited and HEG Limited, you can compare the effects of market volatilities on Global Health and HEG 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 HEG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Health and HEG.
Diversification Opportunities for Global Health and HEG
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Global and HEG is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Global Health Limited and HEG Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEG Limited 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 HEG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEG Limited has no effect on the direction of Global Health i.e., Global Health and HEG go up and down completely randomly.
Pair Corralation between Global Health and HEG
Assuming the 90 days trading horizon Global Health Limited is expected to generate 0.47 times more return on investment than HEG. However, Global Health Limited is 2.14 times less risky than HEG. It trades about -0.35 of its potential returns per unit of risk. HEG Limited is currently generating about -0.33 per unit of risk. If you would invest 118,005 in Global Health Limited on October 9, 2024 and sell it today you would lose (11,005) from holding Global Health Limited or give up 9.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Health Limited vs. HEG Limited
Performance |
| Timeline |
| Global Health Limited |
| HEG Limited |
Global Health and HEG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Health and HEG
The main advantage of trading using opposite Global Health and HEG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Health position performs unexpectedly, HEG 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 HEG will offset losses from the drop in HEG's long position.| Global Health vs. Zee Entertainment Enterprises | Global Health vs. Future Retail Limited | Global Health vs. Imagicaaworld Entertainment Limited | Global Health vs. Network18 Media Investments |
| HEG vs. Bikaji Foods International | HEG vs. UCO Bank | HEG vs. Allied Blenders Distillers | HEG vs. ADF Foods Limited |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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