Correlation Between Sabien Technology and HCA Healthcare
Can any of the company-specific risk be diversified away by investing in both Sabien Technology and HCA 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 Sabien Technology and HCA Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sabien Technology Group and HCA Healthcare, you can compare the effects of market volatilities on Sabien Technology and HCA 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 Sabien Technology with a short position of HCA Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sabien Technology and HCA Healthcare.
Diversification Opportunities for Sabien Technology and HCA Healthcare
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Sabien and HCA is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Sabien Technology Group and HCA Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HCA Healthcare and Sabien Technology 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 Sabien Technology Group are associated (or correlated) with HCA Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HCA Healthcare has no effect on the direction of Sabien Technology i.e., Sabien Technology and HCA Healthcare go up and down completely randomly.
Pair Corralation between Sabien Technology and HCA Healthcare
Assuming the 90 days trading horizon Sabien Technology Group is expected to generate 1.89 times more return on investment than HCA Healthcare. However, Sabien Technology is 1.89 times more volatile than HCA Healthcare. It trades about 0.01 of its potential returns per unit of risk. HCA Healthcare is currently generating about 0.0 per unit of risk. If you would invest 1,225 in Sabien Technology Group on September 1, 2024 and sell it today you would lose (50.00) from holding Sabien Technology Group or give up 4.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.23% |
| Values | Daily Returns |
Sabien Technology Group vs. HCA Healthcare
Performance |
| Timeline |
| Sabien Technology |
| HCA Healthcare |
Sabien Technology and HCA Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sabien Technology and HCA Healthcare
The main advantage of trading using opposite Sabien Technology and HCA Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sabien Technology position performs unexpectedly, HCA 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 HCA Healthcare will offset losses from the drop in HCA Healthcare's long position.| Sabien Technology vs. Synchrony Financial | Sabien Technology vs. CleanTech Lithium plc | Sabien Technology vs. Virgin Wines UK | Sabien Technology vs. BW Offshore |
| HCA Healthcare vs. Uniper SE | HCA Healthcare vs. Mulberry Group PLC | HCA Healthcare vs. London Security Plc | HCA Healthcare vs. Triad Group PLC |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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