Correlation Between Oceania Healthcare and BTC Health
Can any of the company-specific risk be diversified away by investing in both Oceania Healthcare and BTC 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 Oceania Healthcare and BTC Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Oceania Healthcare and BTC Health Limited, you can compare the effects of market volatilities on Oceania Healthcare and BTC 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 Oceania Healthcare with a short position of BTC Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oceania Healthcare and BTC Health.
Diversification Opportunities for Oceania Healthcare and BTC Health
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Oceania and BTC is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Oceania Healthcare and BTC Health Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTC Health Limited and Oceania Healthcare 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 Oceania Healthcare are associated (or correlated) with BTC Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTC Health Limited has no effect on the direction of Oceania Healthcare i.e., Oceania Healthcare and BTC Health go up and down completely randomly.
Pair Corralation between Oceania Healthcare and BTC Health
Assuming the 90 days trading horizon Oceania Healthcare is expected to under-perform the BTC Health. In addition to that, Oceania Healthcare is 1.06 times more volatile than BTC Health Limited. It trades about -0.06 of its total potential returns per unit of risk. BTC Health Limited is currently generating about 0.12 per unit of volatility. If you would invest 4.50 in BTC Health Limited on September 2, 2024 and sell it today you would earn a total of 1.20 from holding BTC Health Limited or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oceania Healthcare vs. BTC Health Limited
Performance |
| Timeline |
| Oceania Healthcare |
| BTC Health Limited |
Oceania Healthcare and BTC Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oceania Healthcare and BTC Health
The main advantage of trading using opposite Oceania Healthcare and BTC Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oceania Healthcare position performs unexpectedly, BTC 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 BTC Health will offset losses from the drop in BTC Health's long position.| Oceania Healthcare vs. Westpac Banking | Oceania Healthcare vs. iShares Global Healthcare | Oceania Healthcare vs. Australian Dairy Farms | Oceania Healthcare vs. Adriatic Metals Plc |
| BTC Health vs. Aneka Tambang Tbk | BTC Health vs. Commonwealth Bank | BTC Health vs. Commonwealth Bank of | BTC Health vs. Australia and New |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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