Correlation Between MyHealthChecked Plc and Avon Protection
Can any of the company-specific risk be diversified away by investing in both MyHealthChecked Plc and Avon Protection 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 Avon Protection into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MyHealthChecked Plc and Avon Protection PLC, you can compare the effects of market volatilities on MyHealthChecked Plc and Avon Protection 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 Avon Protection. Check out your portfolio center. Please also check ongoing floating volatility patterns of MyHealthChecked Plc and Avon Protection.
Diversification Opportunities for MyHealthChecked Plc and Avon Protection
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between MyHealthChecked and Avon is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding MyHealthChecked Plc and Avon Protection PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avon Protection PLC 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 Avon Protection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avon Protection PLC has no effect on the direction of MyHealthChecked Plc i.e., MyHealthChecked Plc and Avon Protection go up and down completely randomly.
Pair Corralation between MyHealthChecked Plc and Avon Protection
Assuming the 90 days trading horizon MyHealthChecked Plc is expected to generate 2.23 times less return on investment than Avon Protection. In addition to that, MyHealthChecked Plc is 2.07 times more volatile than Avon Protection PLC. It trades about 0.03 of its total potential returns per unit of risk. Avon Protection PLC is currently generating about 0.12 per unit of volatility. If you would invest 78,058 in Avon Protection PLC on September 14, 2024 and sell it today you would earn a total of 59,942 from holding Avon Protection PLC or generate 76.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.42% |
| Values | Daily Returns |
MyHealthChecked Plc vs. Avon Protection PLC
Performance |
| Timeline |
| MyHealthChecked Plc |
| Avon Protection PLC |
MyHealthChecked Plc and Avon Protection Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MyHealthChecked Plc and Avon Protection
The main advantage of trading using opposite MyHealthChecked Plc and Avon Protection positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MyHealthChecked Plc position performs unexpectedly, Avon Protection 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 Avon Protection will offset losses from the drop in Avon Protection's long position.| MyHealthChecked Plc vs. United Internet AG | MyHealthChecked Plc vs. Spirent Communications plc | MyHealthChecked Plc vs. Symphony Environmental Technologies | MyHealthChecked Plc vs. Cairo Communication SpA |
| Avon Protection vs. Polar Capital Technology | Avon Protection vs. CVS Health Corp | Avon Protection vs. Spotify Technology SA | Avon Protection vs. MyHealthChecked 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Transaction History View history of all your transactions and understand their impact on performance |