Correlation Between MyHealthChecked Plc and Trellus Health
Can any of the company-specific risk be diversified away by investing in both MyHealthChecked Plc and Trellus Health 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 Trellus Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MyHealthChecked Plc and Trellus Health plc, you can compare the effects of market volatilities on MyHealthChecked Plc and Trellus Health 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 Trellus Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of MyHealthChecked Plc and Trellus Health.
Diversification Opportunities for MyHealthChecked Plc and Trellus Health
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between MyHealthChecked and Trellus is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding MyHealthChecked Plc and Trellus Health plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Trellus Health 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 Trellus Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Trellus Health plc has no effect on the direction of MyHealthChecked Plc i.e., MyHealthChecked Plc and Trellus Health go up and down completely randomly.
Pair Corralation between MyHealthChecked Plc and Trellus Health
Assuming the 90 days trading horizon MyHealthChecked Plc is expected to generate 1.28 times more return on investment than Trellus Health. However, MyHealthChecked Plc is 1.28 times more volatile than Trellus Health plc. It trades about 0.21 of its potential returns per unit of risk. Trellus Health plc is currently generating about -0.38 per unit of risk. If you would invest 1,100 in MyHealthChecked Plc on October 9, 2024 and sell it today you would earn a total of 125.00 from holding MyHealthChecked Plc or generate 11.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
MyHealthChecked Plc vs. Trellus Health plc
Performance |
| Timeline |
| MyHealthChecked Plc |
| Trellus Health plc |
MyHealthChecked Plc and Trellus Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MyHealthChecked Plc and Trellus Health
The main advantage of trading using opposite MyHealthChecked Plc and Trellus Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MyHealthChecked Plc position performs unexpectedly, Trellus Health 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 Trellus Health will offset losses from the drop in Trellus Health's long position.| MyHealthChecked Plc vs. Livermore Investments Group | MyHealthChecked Plc vs. Jupiter Green Investment | MyHealthChecked Plc vs. United Utilities Group | MyHealthChecked Plc vs. Lindsell Train Investment |
| Trellus Health vs. Global Net Lease | Trellus Health vs. Accesso Technology Group | Trellus Health vs. CleanTech Lithium plc | Trellus Health vs. International Biotechnology Trust |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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