Correlation Between Supurva Healthcare and Hong Yuan
Can any of the company-specific risk be diversified away by investing in both Supurva Healthcare and Hong Yuan 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 Supurva Healthcare and Hong Yuan into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Supurva Healthcare Group and Hong Yuan Holding, you can compare the effects of market volatilities on Supurva Healthcare and Hong Yuan 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 Supurva Healthcare with a short position of Hong Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Supurva Healthcare and Hong Yuan.
Diversification Opportunities for Supurva Healthcare and Hong Yuan
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Supurva and Hong is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Supurva Healthcare Group and Hong Yuan Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hong Yuan Holding and Supurva Healthcare 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 Supurva Healthcare Group are associated (or correlated) with Hong Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hong Yuan Holding has no effect on the direction of Supurva Healthcare i.e., Supurva Healthcare and Hong Yuan go up and down completely randomly.
Pair Corralation between Supurva Healthcare and Hong Yuan
Given the investment horizon of 90 days Supurva Healthcare Group is expected to generate 4.25 times more return on investment than Hong Yuan. However, Supurva Healthcare is 4.25 times more volatile than Hong Yuan Holding. It trades about 0.17 of its potential returns per unit of risk. Hong Yuan Holding is currently generating about 0.13 per unit of risk. If you would invest 0.01 in Supurva Healthcare Group on September 3, 2024 and sell it today you would earn a total of 0.01 from holding Supurva Healthcare Group or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.43% |
| Values | Daily Returns |
Supurva Healthcare Group vs. Hong Yuan Holding
Performance |
| Timeline |
| Supurva Healthcare |
| Hong Yuan Holding |
Supurva Healthcare and Hong Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Supurva Healthcare and Hong Yuan
The main advantage of trading using opposite Supurva Healthcare and Hong Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Supurva Healthcare position performs unexpectedly, Hong Yuan 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 Hong Yuan will offset losses from the drop in Hong Yuan's long position.| Supurva Healthcare vs. Now Corp | Supurva Healthcare vs. Vg Life Sciences | Supurva Healthcare vs. FDCTech | Supurva Healthcare vs. RAADR Inc |
| Hong Yuan vs. Manaris Corp | Hong Yuan vs. Green Planet Bio | Hong Yuan vs. Continental Beverage Brands | Hong Yuan vs. Opus Magnum Ameris |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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