Correlation Between Ramsay Health and IHH Healthcare
Can any of the company-specific risk be diversified away by investing in both Ramsay Health and IHH 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 Ramsay Health and IHH Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ramsay Health Care and IHH Healthcare Berhad, you can compare the effects of market volatilities on Ramsay Health and IHH 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 Ramsay Health with a short position of IHH Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramsay Health and IHH Healthcare.
Diversification Opportunities for Ramsay Health and IHH Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ramsay and IHH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ramsay Health Care and IHH Healthcare Berhad in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IHH Healthcare Berhad and Ramsay 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 Ramsay Health Care are associated (or correlated) with IHH Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IHH Healthcare Berhad has no effect on the direction of Ramsay Health i.e., Ramsay Health and IHH Healthcare go up and down completely randomly.
Pair Corralation between Ramsay Health and IHH Healthcare
Assuming the 90 days horizon Ramsay Health is expected to generate 1.09 times less return on investment than IHH Healthcare. In addition to that, Ramsay Health is 3.13 times more volatile than IHH Healthcare Berhad. It trades about 0.01 of its total potential returns per unit of risk. IHH Healthcare Berhad is currently generating about 0.03 per unit of volatility. If you would invest 116.00 in IHH Healthcare Berhad on September 4, 2024 and sell it today you would earn a total of 3.00 from holding IHH Healthcare Berhad or generate 2.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 68.78% |
| Values | Daily Returns |
Ramsay Health Care vs. IHH Healthcare Berhad
Performance |
| Timeline |
| Ramsay Health Care |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| IHH Healthcare Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ramsay Health and IHH Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramsay Health and IHH Healthcare
The main advantage of trading using opposite Ramsay Health and IHH Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramsay Health position performs unexpectedly, IHH 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 IHH Healthcare will offset losses from the drop in IHH Healthcare's long position.| Ramsay Health vs. Fresenius SE Co | Ramsay Health vs. Life Healthcare Group | Ramsay Health vs. Select Medical Holdings | Ramsay Health vs. Ramsay Health Care |
| IHH Healthcare vs. Tower Semiconductor | IHH Healthcare vs. Entegris | IHH Healthcare vs. Analog Devices | IHH Healthcare vs. Elmos Semiconductor SE |
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.
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