Correlation Between Mitie Group and Henry Schein
Can any of the company-specific risk be diversified away by investing in both Mitie Group and Henry Schein 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 Mitie Group and Henry Schein into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitie Group PLC and Henry Schein, you can compare the effects of market volatilities on Mitie Group and Henry Schein 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 Mitie Group with a short position of Henry Schein. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitie Group and Henry Schein.
Diversification Opportunities for Mitie Group and Henry Schein
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Mitie and Henry is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Mitie Group PLC and Henry Schein in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henry Schein and Mitie Group 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 Mitie Group PLC are associated (or correlated) with Henry Schein. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henry Schein has no effect on the direction of Mitie Group i.e., Mitie Group and Henry Schein go up and down completely randomly.
Pair Corralation between Mitie Group and Henry Schein
If you would invest 124,400 in Mitie Group PLC on December 1, 2024 and sell it today you would lose (4,700) from holding Mitie Group PLC or give up 3.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.22% |
| Values | Daily Returns |
Mitie Group PLC vs. Henry Schein
Performance |
| Timeline |
| Mitie Group PLC |
| Henry Schein |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Mitie Group and Henry Schein Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitie Group and Henry Schein
The main advantage of trading using opposite Mitie Group and Henry Schein positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitie Group position performs unexpectedly, Henry Schein 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 Henry Schein will offset losses from the drop in Henry Schein's long position.| Mitie Group vs. ANTA Sports Products | Mitie Group vs. Xinhua Winshare Publishing | Mitie Group vs. EMBARK EDUCATION LTD | Mitie Group vs. DeVry Education Group |
| Henry Schein vs. Scottish Mortgage Investment | Henry Schein vs. KENEDIX OFFICE INV | Henry Schein vs. New Residential Investment | Henry Schein vs. American Homes 4 |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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