Correlation Between Partners Group and HBM Healthcare
Can any of the company-specific risk be diversified away by investing in both Partners Group and HBM Healthcare 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 Partners Group and HBM Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Partners Group Holding and HBM Healthcare Investments, you can compare the effects of market volatilities on Partners Group and HBM Healthcare 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 Partners Group with a short position of HBM Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Partners Group and HBM Healthcare.
Diversification Opportunities for Partners Group and HBM Healthcare
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Partners and HBM is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Partners Group Holding and HBM Healthcare Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HBM Healthcare Inves and Partners Group 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 Partners Group Holding are associated (or correlated) with HBM Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HBM Healthcare Inves has no effect on the direction of Partners Group i.e., Partners Group and HBM Healthcare go up and down completely randomly.
Pair Corralation between Partners Group and HBM Healthcare
Assuming the 90 days trading horizon Partners Group Holding is expected to generate 0.58 times more return on investment than HBM Healthcare. However, Partners Group Holding is 1.72 times less risky than HBM Healthcare. It trades about 0.53 of its potential returns per unit of risk. HBM Healthcare Investments is currently generating about 0.18 per unit of risk. If you would invest 121,800 in Partners Group Holding on October 24, 2024 and sell it today you would earn a total of 13,200 from holding Partners Group Holding or generate 10.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Partners Group Holding vs. HBM Healthcare Investments
Performance |
| Timeline |
| Partners Group Holding |
| HBM Healthcare Inves |
Partners Group and HBM Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Partners Group and HBM Healthcare
The main advantage of trading using opposite Partners Group and HBM Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Partners Group position performs unexpectedly, HBM Healthcare 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 HBM Healthcare will offset losses from the drop in HBM Healthcare's long position.| Partners Group vs. Sika AG | Partners Group vs. Swiss Life Holding | Partners Group vs. Givaudan SA | Partners Group vs. Lonza Group AG |
| HBM Healthcare vs. BB Biotech AG | HBM Healthcare vs. Partners Group Holding | HBM Healthcare vs. Tecan Group AG | HBM Healthcare vs. VAT Group AG |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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