Correlation Between HEMISPHERE EGY and SHIP HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both HEMISPHERE EGY and SHIP 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 HEMISPHERE EGY and SHIP HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEMISPHERE EGY and SHIP HEALTHCARE HLDGINC, you can compare the effects of market volatilities on HEMISPHERE EGY and SHIP 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 HEMISPHERE EGY with a short position of SHIP HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEMISPHERE EGY and SHIP HEALTHCARE.
Diversification Opportunities for HEMISPHERE EGY and SHIP HEALTHCARE
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between HEMISPHERE and SHIP is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding HEMISPHERE EGY and SHIP HEALTHCARE HLDGINC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SHIP HEALTHCARE HLDGINC and HEMISPHERE EGY 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 HEMISPHERE EGY are associated (or correlated) with SHIP HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SHIP HEALTHCARE HLDGINC has no effect on the direction of HEMISPHERE EGY i.e., HEMISPHERE EGY and SHIP HEALTHCARE go up and down completely randomly.
Pair Corralation between HEMISPHERE EGY and SHIP HEALTHCARE
Assuming the 90 days trading horizon HEMISPHERE EGY is expected to generate 1.08 times more return on investment than SHIP HEALTHCARE. However, HEMISPHERE EGY is 1.08 times more volatile than SHIP HEALTHCARE HLDGINC. It trades about 0.01 of its potential returns per unit of risk. SHIP HEALTHCARE HLDGINC is currently generating about -0.06 per unit of risk. If you would invest 124.00 in HEMISPHERE EGY on August 31, 2024 and sell it today you would earn a total of 0.00 from holding HEMISPHERE EGY or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HEMISPHERE EGY vs. SHIP HEALTHCARE HLDGINC
Performance |
| Timeline |
| HEMISPHERE EGY |
| SHIP HEALTHCARE HLDGINC |
HEMISPHERE EGY and SHIP HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEMISPHERE EGY and SHIP HEALTHCARE
The main advantage of trading using opposite HEMISPHERE EGY and SHIP HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEMISPHERE EGY position performs unexpectedly, SHIP 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 SHIP HEALTHCARE will offset losses from the drop in SHIP HEALTHCARE's long position.| HEMISPHERE EGY vs. PRECISION DRILLING P | HEMISPHERE EGY vs. SEI INVESTMENTS | HEMISPHERE EGY vs. MSAD INSURANCE | HEMISPHERE EGY vs. PennyMac Mortgage Investment |
| SHIP HEALTHCARE vs. CVW CLEANTECH INC | SHIP HEALTHCARE vs. Science Applications International | SHIP HEALTHCARE vs. Ultra Clean Holdings | SHIP HEALTHCARE vs. Automatic Data Processing |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |