Correlation Between State Bank and MyHealthChecked Plc
Can any of the company-specific risk be diversified away by investing in both State Bank 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 State Bank and MyHealthChecked Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between State Bank of and MyHealthChecked Plc, you can compare the effects of market volatilities on State Bank 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 State Bank with a short position of MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Bank and MyHealthChecked Plc.
Diversification Opportunities for State Bank and MyHealthChecked Plc
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between State and MyHealthChecked is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding State Bank of and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and State Bank 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 State Bank of 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 State Bank i.e., State Bank and MyHealthChecked Plc go up and down completely randomly.
Pair Corralation between State Bank and MyHealthChecked Plc
Assuming the 90 days trading horizon State Bank of is expected to generate 0.64 times more return on investment than MyHealthChecked Plc. However, State Bank of is 1.56 times less risky than MyHealthChecked Plc. It trades about 0.07 of its potential returns per unit of risk. MyHealthChecked Plc is currently generating about -0.09 per unit of risk. If you would invest 9,740 in State Bank of on August 31, 2024 and sell it today you would earn a total of 240.00 from holding State Bank of or generate 2.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Bank of vs. MyHealthChecked Plc
Performance |
| Timeline |
| State Bank |
| MyHealthChecked Plc |
State Bank and MyHealthChecked Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Bank and MyHealthChecked Plc
The main advantage of trading using opposite State Bank and MyHealthChecked Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Bank 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.| State Bank vs. Advanced Medical Solutions | State Bank vs. Westlake Chemical Corp | State Bank vs. McEwen Mining | State Bank vs. Elmos Semiconductor SE |
| MyHealthChecked Plc vs. Toyota Motor Corp | MyHealthChecked Plc vs. SoftBank Group Corp | MyHealthChecked Plc vs. State Bank of | MyHealthChecked Plc vs. MOL Hungarian Oil |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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