Correlation Between Regis Healthcare and Hutchison Telecommunicatio
Can any of the company-specific risk be diversified away by investing in both Regis Healthcare and Hutchison Telecommunicatio 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 Regis Healthcare and Hutchison Telecommunicatio into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regis Healthcare and Hutchison Telecommunications, you can compare the effects of market volatilities on Regis Healthcare and Hutchison Telecommunicatio 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 Regis Healthcare with a short position of Hutchison Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regis Healthcare and Hutchison Telecommunicatio.
Diversification Opportunities for Regis Healthcare and Hutchison Telecommunicatio
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Regis and Hutchison is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Regis Healthcare and Hutchison Telecommunications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hutchison Telecommunicatio and Regis Healthcare 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 Regis Healthcare are associated (or correlated) with Hutchison Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hutchison Telecommunicatio has no effect on the direction of Regis Healthcare i.e., Regis Healthcare and Hutchison Telecommunicatio go up and down completely randomly.
Pair Corralation between Regis Healthcare and Hutchison Telecommunicatio
Assuming the 90 days trading horizon Regis Healthcare is expected to generate 0.47 times more return on investment than Hutchison Telecommunicatio. However, Regis Healthcare is 2.12 times less risky than Hutchison Telecommunicatio. It trades about 0.05 of its potential returns per unit of risk. Hutchison Telecommunications is currently generating about -0.11 per unit of risk. If you would invest 646.00 in Regis Healthcare on August 29, 2024 and sell it today you would earn a total of 10.00 from holding Regis Healthcare or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regis Healthcare vs. Hutchison Telecommunications
Performance |
| Timeline |
| Regis Healthcare |
| Hutchison Telecommunicatio |
Regis Healthcare and Hutchison Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regis Healthcare and Hutchison Telecommunicatio
The main advantage of trading using opposite Regis Healthcare and Hutchison Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regis Healthcare position performs unexpectedly, Hutchison Telecommunicatio 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 Hutchison Telecommunicatio will offset losses from the drop in Hutchison Telecommunicatio's long position.| Regis Healthcare vs. Inventis | Regis Healthcare vs. PM Capital Global | Regis Healthcare vs. Macquarie Group Ltd | Regis Healthcare vs. Wam Leaders |
| Hutchison Telecommunicatio vs. Macquarie Group | Hutchison Telecommunicatio vs. CSL | Hutchison Telecommunicatio vs. Commonwealth Bank of | Hutchison Telecommunicatio vs. Commonwealth Bank of |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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