Correlation Between Global Health and Power Finance
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By analyzing existing cross correlation between Global Health Limited and Power Finance, you can compare the effects of market volatilities on Global Health and Power Finance 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 Power Finance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Health and Power Finance.
Diversification Opportunities for Global Health and Power Finance
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Global and Power is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Global Health Limited and Power Finance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Finance 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 Power Finance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Finance has no effect on the direction of Global Health i.e., Global Health and Power Finance go up and down completely randomly.
Pair Corralation between Global Health and Power Finance
Assuming the 90 days trading horizon Global Health Limited is expected to generate 0.72 times more return on investment than Power Finance. However, Global Health Limited is 1.39 times less risky than Power Finance. It trades about -0.06 of its potential returns per unit of risk. Power Finance is currently generating about -0.12 per unit of risk. If you would invest 107,835 in Global Health Limited on October 29, 2024 and sell it today you would lose (3,120) from holding Global Health Limited or give up 2.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Health Limited vs. Power Finance
Performance |
| Timeline |
| Global Health Limited |
| Power Finance |
Global Health and Power Finance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Health and Power Finance
The main advantage of trading using opposite Global Health and Power Finance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Health position performs unexpectedly, Power Finance 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 Power Finance will offset losses from the drop in Power Finance's long position.| Global Health vs. Patanjali Foods Limited | Global Health vs. The Investment Trust | Global Health vs. Welspun Investments and | Global Health vs. LT Foods Limited |
| Power Finance vs. Parag Milk Foods | Power Finance vs. Patanjali Foods Limited | Power Finance vs. Compucom Software Limited | Power Finance vs. R S Software |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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