Correlation Between Optima Health and Helios Towers
Can any of the company-specific risk be diversified away by investing in both Optima Health and Helios Towers 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 Optima Health and Helios Towers into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Optima Health plc and Helios Towers Plc, you can compare the effects of market volatilities on Optima Health and Helios Towers 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 Optima Health with a short position of Helios Towers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optima Health and Helios Towers.
Diversification Opportunities for Optima Health and Helios Towers
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Optima and Helios is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Optima Health plc and Helios Towers Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Helios Towers Plc and Optima Health 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 Optima Health plc are associated (or correlated) with Helios Towers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Helios Towers Plc has no effect on the direction of Optima Health i.e., Optima Health and Helios Towers go up and down completely randomly.
Pair Corralation between Optima Health and Helios Towers
Assuming the 90 days trading horizon Optima Health plc is expected to generate 0.52 times more return on investment than Helios Towers. However, Optima Health plc is 1.94 times less risky than Helios Towers. It trades about 0.05 of its potential returns per unit of risk. Helios Towers Plc is currently generating about 0.01 per unit of risk. If you would invest 15,100 in Optima Health plc on September 13, 2024 and sell it today you would earn a total of 500.00 from holding Optima Health plc or generate 3.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 11.07% |
| Values | Daily Returns |
Optima Health plc vs. Helios Towers Plc
Performance |
| Timeline |
| Optima Health plc |
| Helios Towers Plc |
Optima Health and Helios Towers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optima Health and Helios Towers
The main advantage of trading using opposite Optima Health and Helios Towers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optima Health position performs unexpectedly, Helios Towers 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 Helios Towers will offset losses from the drop in Helios Towers' long position.| Optima Health vs. Toyota Motor Corp | Optima Health vs. SoftBank Group Corp | Optima Health vs. OTP Bank Nyrt | Optima Health vs. Hershey Co |
| Helios Towers vs. Molson Coors Beverage | Helios Towers vs. Deltex Medical Group | Helios Towers vs. Optima Health plc | Helios Towers vs. Spire Healthcare Group |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |