Correlation Between Regional Health and Medical Facilities
Can any of the company-specific risk be diversified away by investing in both Regional Health and Medical Facilities 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 Regional Health and Medical Facilities into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regional Health Properties and Medical Facilities, you can compare the effects of market volatilities on Regional Health and Medical Facilities 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 Regional Health with a short position of Medical Facilities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regional Health and Medical Facilities.
Diversification Opportunities for Regional Health and Medical Facilities
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Regional and Medical is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Regional Health Properties and Medical Facilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medical Facilities and Regional 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 Regional Health Properties are associated (or correlated) with Medical Facilities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medical Facilities has no effect on the direction of Regional Health i.e., Regional Health and Medical Facilities go up and down completely randomly.
Pair Corralation between Regional Health and Medical Facilities
Considering the 90-day investment horizon Regional Health Properties is expected to under-perform the Medical Facilities. In addition to that, Regional Health is 2.95 times more volatile than Medical Facilities. It trades about -0.04 of its total potential returns per unit of risk. Medical Facilities is currently generating about 0.11 per unit of volatility. If you would invest 896.00 in Medical Facilities on September 3, 2024 and sell it today you would earn a total of 218.00 from holding Medical Facilities or generate 24.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 99.19% |
| Values | Daily Returns |
Regional Health Properties vs. Medical Facilities
Performance |
| Timeline |
| Regional Health Prop |
| Medical Facilities |
Regional Health and Medical Facilities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regional Health and Medical Facilities
The main advantage of trading using opposite Regional Health and Medical Facilities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regional Health position performs unexpectedly, Medical Facilities 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 Medical Facilities will offset losses from the drop in Medical Facilities' long position.| Regional Health vs. Ramsay Health Care | Regional Health vs. Jack Nathan Medical | Regional Health vs. Nova Leap Health | Regional Health vs. Fresenius SE Co |
| Medical Facilities vs. Pmv Pharmaceuticals | Medical Facilities vs. MediciNova | Medical Facilities vs. Pharvaris BV | Medical Facilities vs. PepGen |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Positions Ratings 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 | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |