Correlation Between MyHealthChecked Plc and HCA Healthcare
Can any of the company-specific risk be diversified away by investing in both MyHealthChecked Plc and HCA Healthcare 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 HCA Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MyHealthChecked Plc and HCA Healthcare, you can compare the effects of market volatilities on MyHealthChecked Plc and HCA Healthcare 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 HCA Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of MyHealthChecked Plc and HCA Healthcare.
Diversification Opportunities for MyHealthChecked Plc and HCA Healthcare
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between MyHealthChecked and HCA is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding MyHealthChecked Plc and HCA Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HCA Healthcare 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 HCA Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HCA Healthcare has no effect on the direction of MyHealthChecked Plc i.e., MyHealthChecked Plc and HCA Healthcare go up and down completely randomly.
Pair Corralation between MyHealthChecked Plc and HCA Healthcare
Assuming the 90 days trading horizon MyHealthChecked Plc is expected to generate 1.83 times more return on investment than HCA Healthcare. However, MyHealthChecked Plc is 1.83 times more volatile than HCA Healthcare. It trades about -0.02 of its potential returns per unit of risk. HCA Healthcare is currently generating about -0.27 per unit of risk. If you would invest 1,250 in MyHealthChecked Plc on August 30, 2024 and sell it today you would lose (25.00) from holding MyHealthChecked Plc or give up 2.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MyHealthChecked Plc vs. HCA Healthcare
Performance |
| Timeline |
| MyHealthChecked Plc |
| HCA Healthcare |
MyHealthChecked Plc and HCA Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MyHealthChecked Plc and HCA Healthcare
The main advantage of trading using opposite MyHealthChecked Plc and HCA Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MyHealthChecked Plc position performs unexpectedly, HCA Healthcare 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 HCA Healthcare will offset losses from the drop in HCA Healthcare's long position.| MyHealthChecked Plc vs. Samsung Electronics Co | MyHealthChecked Plc vs. Samsung Electronics Co | MyHealthChecked Plc vs. Hyundai Motor | MyHealthChecked Plc vs. Toyota Motor Corp |
| HCA Healthcare vs. Lendinvest PLC | HCA Healthcare vs. Neometals | HCA Healthcare vs. Albion Technology General | HCA Healthcare vs. Jupiter Fund Management |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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