Correlation Between Patria Investments and Hospital Mater
Can any of the company-specific risk be diversified away by investing in both Patria Investments and Hospital Mater 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 Patria Investments and Hospital Mater into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Patria Investments Limited and Hospital Mater Dei, you can compare the effects of market volatilities on Patria Investments and Hospital Mater 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 Patria Investments with a short position of Hospital Mater. Check out your portfolio center. Please also check ongoing floating volatility patterns of Patria Investments and Hospital Mater.
Diversification Opportunities for Patria Investments and Hospital Mater
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Patria and Hospital is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Patria Investments Limited and Hospital Mater Dei in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hospital Mater Dei and Patria Investments 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 Patria Investments Limited are associated (or correlated) with Hospital Mater. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hospital Mater Dei has no effect on the direction of Patria Investments i.e., Patria Investments and Hospital Mater go up and down completely randomly.
Pair Corralation between Patria Investments and Hospital Mater
Assuming the 90 days trading horizon Patria Investments Limited is expected to generate 0.5 times more return on investment than Hospital Mater. However, Patria Investments Limited is 2.02 times less risky than Hospital Mater. It trades about -0.26 of its potential returns per unit of risk. Hospital Mater Dei is currently generating about -0.14 per unit of risk. If you would invest 3,812 in Patria Investments Limited on October 14, 2024 and sell it today you would lose (244.00) from holding Patria Investments Limited or give up 6.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Patria Investments Limited vs. Hospital Mater Dei
Performance |
| Timeline |
| Patria Investments |
| Hospital Mater Dei |
Patria Investments and Hospital Mater Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Patria Investments and Hospital Mater
The main advantage of trading using opposite Patria Investments and Hospital Mater positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Patria Investments position performs unexpectedly, Hospital Mater 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 Hospital Mater will offset losses from the drop in Hospital Mater's long position.| Patria Investments vs. Fair Isaac | Patria Investments vs. United Airlines Holdings | Patria Investments vs. Westinghouse Air Brake | Patria Investments vs. SK Telecom Co, |
| Hospital Mater vs. Vulcan Materials | Hospital Mater vs. Patria Investments Limited | Hospital Mater vs. G2D Investments | Hospital Mater vs. DENTSPLY SIRONA |
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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