Correlation Between Table Trac and Pacific Health
Can any of the company-specific risk be diversified away by investing in both Table Trac and Pacific Health 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 Table Trac and Pacific Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Table Trac and Pacific Health Care, you can compare the effects of market volatilities on Table Trac and Pacific Health 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 Table Trac with a short position of Pacific Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Table Trac and Pacific Health.
Diversification Opportunities for Table Trac and Pacific Health
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Table and Pacific is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Table Trac and Pacific Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pacific Health Care and Table Trac 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 Table Trac are associated (or correlated) with Pacific Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pacific Health Care has no effect on the direction of Table Trac i.e., Table Trac and Pacific Health go up and down completely randomly.
Pair Corralation between Table Trac and Pacific Health
Given the investment horizon of 90 days Table Trac is expected to generate 1.18 times more return on investment than Pacific Health. However, Table Trac is 1.18 times more volatile than Pacific Health Care. It trades about 0.06 of its potential returns per unit of risk. Pacific Health Care is currently generating about 0.01 per unit of risk. If you would invest 370.00 in Table Trac on November 3, 2024 and sell it today you would earn a total of 10.00 from holding Table Trac or generate 2.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Table Trac vs. Pacific Health Care
Performance |
| Timeline |
| Table Trac |
| Pacific Health Care |
Table Trac and Pacific Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Table Trac and Pacific Health
The main advantage of trading using opposite Table Trac and Pacific Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Table Trac position performs unexpectedly, Pacific Health 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 Pacific Health will offset losses from the drop in Pacific Health's long position.| Table Trac vs. Banyan Tree Holdings | Table Trac vs. Nagacorp | Table Trac vs. Wynn Macau | Table Trac vs. MGM China Holdings |
| Pacific Health vs. Pharma Bio Serv | Pacific Health vs. Greystone Logistics | Pacific Health vs. Table Trac | Pacific Health vs. Western Capital Resources |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |