Correlation Between Optima Health and MyHealthChecked Plc
Can any of the company-specific risk be diversified away by investing in both Optima Health and MyHealthChecked Plc 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 MyHealthChecked Plc 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 MyHealthChecked Plc, you can compare the effects of market volatilities on Optima Health and MyHealthChecked Plc 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 MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Optima Health and MyHealthChecked Plc.
Diversification Opportunities for Optima Health and MyHealthChecked Plc
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Optima and MyHealthChecked is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Optima Health plc and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked 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 MyHealthChecked Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyHealthChecked Plc has no effect on the direction of Optima Health i.e., Optima Health and MyHealthChecked Plc go up and down completely randomly.
Pair Corralation between Optima Health and MyHealthChecked Plc
Assuming the 90 days trading horizon Optima Health plc is expected to generate 0.31 times more return on investment than MyHealthChecked Plc. However, Optima Health plc is 3.21 times less risky than MyHealthChecked Plc. It trades about 0.08 of its potential returns per unit of risk. MyHealthChecked Plc is currently generating about -0.02 per unit of risk. If you would invest 15,100 in Optima Health plc on August 26, 2024 and sell it today you would earn a total of 700.00 from holding Optima Health plc or generate 4.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 8.81% |
| Values | Daily Returns |
Optima Health plc vs. MyHealthChecked Plc
Performance |
| Timeline |
| Optima Health plc |
| MyHealthChecked Plc |
Optima Health and MyHealthChecked Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Optima Health and MyHealthChecked Plc
The main advantage of trading using opposite Optima Health and MyHealthChecked Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Optima Health position performs unexpectedly, MyHealthChecked Plc 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 MyHealthChecked Plc will offset losses from the drop in MyHealthChecked Plc's long position.| Optima Health vs. Toyota Motor Corp | Optima Health vs. SoftBank Group Corp | Optima Health vs. OTP Bank Nyrt | Optima Health vs. Yum Brands |
| MyHealthChecked Plc vs. Home Depot | MyHealthChecked Plc vs. Weiss Korea Opportunity | MyHealthChecked Plc vs. Chrysalis Investments | MyHealthChecked Plc vs. Coca Cola Co |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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