Correlation Between MyHealthChecked Plc and Air Products
Can any of the company-specific risk be diversified away by investing in both MyHealthChecked Plc and Air Products 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 MyHealthChecked Plc and Air Products into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MyHealthChecked Plc and Air Products Chemicals, you can compare the effects of market volatilities on MyHealthChecked Plc and Air Products 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 MyHealthChecked Plc with a short position of Air Products. Check out your portfolio center. Please also check ongoing floating volatility patterns of MyHealthChecked Plc and Air Products.
Diversification Opportunities for MyHealthChecked Plc and Air Products
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between MyHealthChecked and Air is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding MyHealthChecked Plc and Air Products Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air Products Chemicals and MyHealthChecked Plc 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 MyHealthChecked Plc are associated (or correlated) with Air Products. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air Products Chemicals has no effect on the direction of MyHealthChecked Plc i.e., MyHealthChecked Plc and Air Products go up and down completely randomly.
Pair Corralation between MyHealthChecked Plc and Air Products
Assuming the 90 days trading horizon MyHealthChecked Plc is expected to generate 4.17 times more return on investment than Air Products. However, MyHealthChecked Plc is 4.17 times more volatile than Air Products Chemicals. It trades about 0.42 of its potential returns per unit of risk. Air Products Chemicals is currently generating about 0.3 per unit of risk. If you would invest 1,075 in MyHealthChecked Plc on October 23, 2024 and sell it today you would earn a total of 635.00 from holding MyHealthChecked Plc or generate 59.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
MyHealthChecked Plc vs. Air Products Chemicals
Performance |
| Timeline |
| MyHealthChecked Plc |
| Air Products Chemicals |
MyHealthChecked Plc and Air Products Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MyHealthChecked Plc and Air Products
The main advantage of trading using opposite MyHealthChecked Plc and Air Products positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MyHealthChecked Plc position performs unexpectedly, Air Products 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 Air Products will offset losses from the drop in Air Products' long position.| MyHealthChecked Plc vs. Applied Materials | MyHealthChecked Plc vs. National Beverage Corp | MyHealthChecked Plc vs. Trainline Plc | MyHealthChecked Plc vs. Supermarket Income REIT |
| Air Products vs. Southwest Airlines Co | Air Products vs. Travel Leisure Co | Air Products vs. Zegona Communications Plc | Air Products vs. Spirent Communications plc |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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