Correlation Between Hydreight Technologies and Extendicare
Can any of the company-specific risk be diversified away by investing in both Hydreight Technologies and Extendicare 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 Hydreight Technologies and Extendicare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hydreight Technologies and Extendicare, you can compare the effects of market volatilities on Hydreight Technologies and Extendicare 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 Hydreight Technologies with a short position of Extendicare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hydreight Technologies and Extendicare.
Diversification Opportunities for Hydreight Technologies and Extendicare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hydreight and Extendicare is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Hydreight Technologies and Extendicare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Extendicare and Hydreight Technologies 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 Hydreight Technologies are associated (or correlated) with Extendicare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Extendicare has no effect on the direction of Hydreight Technologies i.e., Hydreight Technologies and Extendicare go up and down completely randomly.
Pair Corralation between Hydreight Technologies and Extendicare
If you would invest 241.00 in Extendicare on November 2, 2024 and sell it today you would earn a total of 802.00 from holding Extendicare or generate 332.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.2% |
Values | Daily Returns |
Hydreight Technologies vs. Extendicare
Performance |
Timeline |
Hydreight Technologies |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Extendicare |
Hydreight Technologies and Extendicare Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hydreight Technologies and Extendicare
The main advantage of trading using opposite Hydreight Technologies and Extendicare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hydreight Technologies position performs unexpectedly, Extendicare 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 Extendicare will offset losses from the drop in Extendicare's long position.Hydreight Technologies vs. Fairfax Financial Holdings | Hydreight Technologies vs. Canso Credit Trust | Hydreight Technologies vs. Income Financial Trust | Hydreight Technologies vs. Air Canada |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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