Correlation Between Mangels Industrial and Hospital Mater
Can any of the company-specific risk be diversified away by investing in both Mangels Industrial and Hospital Mater 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 Mangels Industrial and Hospital Mater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mangels Industrial SA and Hospital Mater Dei, you can compare the effects of market volatilities on Mangels Industrial and Hospital Mater 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 Mangels Industrial with a short position of Hospital Mater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mangels Industrial and Hospital Mater.
Diversification Opportunities for Mangels Industrial and Hospital Mater
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mangels and Hospital is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Mangels Industrial SA and Hospital Mater Dei in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hospital Mater Dei and Mangels Industrial 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 Mangels Industrial SA are associated (or correlated) with Hospital Mater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hospital Mater Dei has no effect on the direction of Mangels Industrial i.e., Mangels Industrial and Hospital Mater go up and down completely randomly.
Pair Corralation between Mangels Industrial and Hospital Mater
Assuming the 90 days trading horizon Mangels Industrial SA is expected to generate 2.49 times more return on investment than Hospital Mater. However, Mangels Industrial is 2.49 times more volatile than Hospital Mater Dei. It trades about 0.03 of its potential returns per unit of risk. Hospital Mater Dei is currently generating about -0.21 per unit of risk. If you would invest 699.00 in Mangels Industrial SA on October 17, 2024 and sell it today you would earn a total of 1.00 from holding Mangels Industrial SA or generate 0.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Mangels Industrial SA vs. Hospital Mater Dei
Performance |
| Timeline |
| Mangels Industrial |
| Hospital Mater Dei |
Mangels Industrial and Hospital Mater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mangels Industrial and Hospital Mater
The main advantage of trading using opposite Mangels Industrial and Hospital Mater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mangels Industrial position performs unexpectedly, Hospital Mater 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 Hospital Mater will offset losses from the drop in Hospital Mater's long position.| Mangels Industrial vs. Inepar SA Indstria | Mangels Industrial vs. Lupatech SA | Mangels Industrial vs. Paranapanema SA | Mangels Industrial vs. Plascar Participaes Industriais |
| Hospital Mater vs. Vulcan Materials | Hospital Mater vs. Mangels Industrial SA | Hospital Mater vs. Tres Tentos Agroindustrial | Hospital Mater vs. Charter Communications |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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