Correlation Between NORTHEAST UTILITIES and WESANA HEALTH
Can any of the company-specific risk be diversified away by investing in both NORTHEAST UTILITIES and WESANA 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 NORTHEAST UTILITIES and WESANA HEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NORTHEAST UTILITIES and WESANA HEALTH HOLD, you can compare the effects of market volatilities on NORTHEAST UTILITIES and WESANA 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 NORTHEAST UTILITIES with a short position of WESANA HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of NORTHEAST UTILITIES and WESANA HEALTH.
Diversification Opportunities for NORTHEAST UTILITIES and WESANA HEALTH
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NORTHEAST and WESANA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NORTHEAST UTILITIES and WESANA HEALTH HOLD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESANA HEALTH HOLD and NORTHEAST UTILITIES 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 NORTHEAST UTILITIES are associated (or correlated) with WESANA HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESANA HEALTH HOLD has no effect on the direction of NORTHEAST UTILITIES i.e., NORTHEAST UTILITIES and WESANA HEALTH go up and down completely randomly.
Pair Corralation between NORTHEAST UTILITIES and WESANA HEALTH
If you would invest 5,578 in NORTHEAST UTILITIES on November 7, 2024 and sell it today you would earn a total of 22.00 from holding NORTHEAST UTILITIES or generate 0.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.31% |
| Values | Daily Returns |
NORTHEAST UTILITIES vs. WESANA HEALTH HOLD
Performance |
| Timeline |
| NORTHEAST UTILITIES |
| WESANA HEALTH HOLD |
NORTHEAST UTILITIES and WESANA HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NORTHEAST UTILITIES and WESANA HEALTH
The main advantage of trading using opposite NORTHEAST UTILITIES and WESANA HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NORTHEAST UTILITIES position performs unexpectedly, WESANA 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 WESANA HEALTH will offset losses from the drop in WESANA HEALTH's long position.| NORTHEAST UTILITIES vs. Apple Inc | NORTHEAST UTILITIES vs. Apple Inc | NORTHEAST UTILITIES vs. Apple Inc | NORTHEAST UTILITIES vs. Apple Inc |
| WESANA HEALTH vs. BORR DRILLING NEW | WESANA HEALTH vs. T Mobile | WESANA HEALTH vs. Linedata Services SA | WESANA HEALTH vs. MICRONIC MYDATA |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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