Correlation Between Ramsay Health and Progressive Corp
Can any of the company-specific risk be diversified away by investing in both Ramsay Health and Progressive Corp 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 Progressive Corp 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 Progressive Corp, you can compare the effects of market volatilities on Ramsay Health and Progressive Corp 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 Progressive Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ramsay Health and Progressive Corp.
Diversification Opportunities for Ramsay Health and Progressive Corp
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ramsay and Progressive is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ramsay Health Care and Progressive Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Progressive Corp 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 Progressive Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Progressive Corp has no effect on the direction of Ramsay Health i.e., Ramsay Health and Progressive Corp go up and down completely randomly.
Pair Corralation between Ramsay Health and Progressive Corp
Assuming the 90 days horizon Ramsay Health Care is expected to under-perform the Progressive Corp. In addition to that, Ramsay Health is 1.32 times more volatile than Progressive Corp. It trades about -0.01 of its total potential returns per unit of risk. Progressive Corp is currently generating about 0.06 per unit of volatility. If you would invest 6,400 in Progressive Corp on September 13, 2024 and sell it today you would earn a total of 100.00 from holding Progressive Corp or generate 1.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Ramsay Health Care vs. Progressive Corp
Performance |
| Timeline |
| Ramsay Health Care |
| Progressive Corp |
Ramsay Health and Progressive Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ramsay Health and Progressive Corp
The main advantage of trading using opposite Ramsay Health and Progressive Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ramsay Health position performs unexpectedly, Progressive Corp 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 Progressive Corp will offset losses from the drop in Progressive Corp's long position.| Ramsay Health vs. Universal Health Services | Ramsay Health vs. Superior Plus Corp | Ramsay Health vs. SIVERS SEMICONDUCTORS AB | Ramsay Health vs. NorAm Drilling AS |
| Progressive Corp vs. Ramsay Health Care | Progressive Corp vs. EHEALTH | Progressive Corp vs. SEKISUI CHEMICAL | Progressive Corp vs. DiamondRock Hospitality |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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