Correlation Between Investment Trust and Global Health
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By analyzing existing cross correlation between The Investment Trust and Global Health Limited, you can compare the effects of market volatilities on Investment Trust and Global 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 Investment Trust with a short position of Global Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Investment Trust and Global Health.
Diversification Opportunities for Investment Trust and Global Health
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Investment and Global is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding The Investment Trust and Global Health Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Health Limited and Investment Trust 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 The Investment Trust are associated (or correlated) with Global Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Health Limited has no effect on the direction of Investment Trust i.e., Investment Trust and Global Health go up and down completely randomly.
Pair Corralation between Investment Trust and Global Health
Assuming the 90 days trading horizon The Investment Trust is expected to under-perform the Global Health. In addition to that, Investment Trust is 1.16 times more volatile than Global Health Limited. It trades about -0.21 of its total potential returns per unit of risk. Global Health Limited is currently generating about -0.03 per unit of volatility. If you would invest 108,505 in Global Health Limited on November 7, 2024 and sell it today you would lose (4,390) from holding Global Health Limited or give up 4.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
The Investment Trust vs. Global Health Limited
Performance |
| Timeline |
| Investment Trust |
| Global Health Limited |
Investment Trust and Global Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Investment Trust and Global Health
The main advantage of trading using opposite Investment Trust and Global Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investment Trust position performs unexpectedly, Global 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 Global Health will offset losses from the drop in Global Health's long position.| Investment Trust vs. Aban Offshore Limited | Investment Trust vs. AUTHUM INVESTMENT INFRASTRUCTU | Investment Trust vs. Nalwa Sons Investments | Investment Trust vs. POWERGRID Infrastructure Investment |
| Global Health vs. Edelweiss Financial Services | Global Health vs. Allied Blenders Distillers | Global Health vs. AU Small Finance | Global Health vs. City Union Bank |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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