Correlation Between Primary Health and MyHealthChecked Plc
Can any of the company-specific risk be diversified away by investing in both Primary 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 Primary 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 Primary Health Properties and MyHealthChecked Plc, you can compare the effects of market volatilities on Primary 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 Primary Health with a short position of MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Primary Health and MyHealthChecked Plc.
Diversification Opportunities for Primary Health and MyHealthChecked Plc
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Primary and MyHealthChecked is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Primary Health Properties and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and Primary 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 Primary Health Properties 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 Primary Health i.e., Primary Health and MyHealthChecked Plc go up and down completely randomly.
Pair Corralation between Primary Health and MyHealthChecked Plc
Assuming the 90 days trading horizon Primary Health Properties is expected to under-perform the MyHealthChecked Plc. But the stock apears to be less risky and, when comparing its historical volatility, Primary Health Properties is 5.18 times less risky than MyHealthChecked Plc. The stock trades about -0.1 of its potential returns per unit of risk. The MyHealthChecked Plc is currently generating about 0.4 of returns per unit of risk over similar time horizon. If you would invest 1,200 in MyHealthChecked Plc on October 25, 2024 and sell it today you would earn a total of 650.00 from holding MyHealthChecked Plc or generate 54.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Primary Health Properties vs. MyHealthChecked Plc
Performance |
| Timeline |
| Primary Health Properties |
| MyHealthChecked Plc |
Primary Health and MyHealthChecked Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Primary Health and MyHealthChecked Plc
The main advantage of trading using opposite Primary Health and MyHealthChecked Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Primary 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.| Primary Health vs. Monks Investment Trust | Primary Health vs. Mobius Investment Trust | Primary Health vs. EJF Investments | Primary Health vs. Omega Healthcare Investors |
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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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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