Correlation Between Urbas Grupo and Labiana Health
Can any of the company-specific risk be diversified away by investing in both Urbas Grupo and Labiana 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 Urbas Grupo and Labiana Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Urbas Grupo Financiero and Labiana Health SA, you can compare the effects of market volatilities on Urbas Grupo and Labiana 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 Urbas Grupo with a short position of Labiana Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Urbas Grupo and Labiana Health.
Diversification Opportunities for Urbas Grupo and Labiana Health
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Urbas and Labiana is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Urbas Grupo Financiero and Labiana Health SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Labiana Health SA and Urbas Grupo 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 Urbas Grupo Financiero are associated (or correlated) with Labiana Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Labiana Health SA has no effect on the direction of Urbas Grupo i.e., Urbas Grupo and Labiana Health go up and down completely randomly.
Pair Corralation between Urbas Grupo and Labiana Health
Assuming the 90 days trading horizon Urbas Grupo Financiero is expected to under-perform the Labiana Health. In addition to that, Urbas Grupo is 1.15 times more volatile than Labiana Health SA. It trades about -0.05 of its total potential returns per unit of risk. Labiana Health SA is currently generating about -0.01 per unit of volatility. If you would invest 312.00 in Labiana Health SA on September 12, 2024 and sell it today you would lose (112.00) from holding Labiana Health SA or give up 35.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 93.85% |
| Values | Daily Returns |
Urbas Grupo Financiero vs. Labiana Health SA
Performance |
| Timeline |
| Urbas Grupo Financiero |
| Labiana Health SA |
Urbas Grupo and Labiana Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Urbas Grupo and Labiana Health
The main advantage of trading using opposite Urbas Grupo and Labiana Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Urbas Grupo position performs unexpectedly, Labiana 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 Labiana Health will offset losses from the drop in Labiana Health's long position.| Urbas Grupo vs. Labiana Health SA | Urbas Grupo vs. Vytrus Biotech SA | Urbas Grupo vs. Home Capital Rentals | Urbas Grupo vs. Borges Agricultural Industrial |
| Labiana Health vs. Airbus Group SE | Labiana Health vs. Industria de Diseno | Labiana Health vs. Vale SA | Labiana Health vs. Iberdrola SA |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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