Correlation Between Pacific Health and Table Trac
Can any of the company-specific risk be diversified away by investing in both Pacific Health and Table Trac 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 Pacific Health and Table Trac into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pacific Health Care and Table Trac, you can compare the effects of market volatilities on Pacific Health and Table Trac 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 Pacific Health with a short position of Table Trac. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pacific Health and Table Trac.
Diversification Opportunities for Pacific Health and Table Trac
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Pacific and Table is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Pacific Health Care and Table Trac in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Table Trac and Pacific 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 Pacific Health Care are associated (or correlated) with Table Trac. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Table Trac has no effect on the direction of Pacific Health i.e., Pacific Health and Table Trac go up and down completely randomly.
Pair Corralation between Pacific Health and Table Trac
Given the investment horizon of 90 days Pacific Health Care is expected to under-perform the Table Trac. But the otc stock apears to be less risky and, when comparing its historical volatility, Pacific Health Care is 1.5 times less risky than Table Trac. The otc stock trades about -0.06 of its potential returns per unit of risk. The Table Trac is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 401.00 in Table Trac on August 24, 2024 and sell it today you would lose (1.00) from holding Table Trac or give up 0.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Pacific Health Care vs. Table Trac
Performance |
| Timeline |
| Pacific Health Care |
| Table Trac |
Pacific Health and Table Trac Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pacific Health and Table Trac
The main advantage of trading using opposite Pacific Health and Table Trac positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pacific Health position performs unexpectedly, Table Trac 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 Table Trac will offset losses from the drop in Table Trac's long position.| Pacific Health vs. Pharma Bio Serv | Pacific Health vs. Greystone Logistics | Pacific Health vs. Table Trac | Pacific Health vs. Western Capital Resources |
| Table Trac vs. Banyan Tree Holdings | Table Trac vs. Nagacorp | Table Trac vs. Wynn Macau | Table Trac vs. MGM China Holdings |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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