Correlation Between US Physical and Gemfields Group
Can any of the company-specific risk be diversified away by investing in both US Physical and Gemfields Group 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 US Physical and Gemfields Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between US Physical Therapy and Gemfields Group Limited, you can compare the effects of market volatilities on US Physical and Gemfields Group 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 US Physical with a short position of Gemfields Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of US Physical and Gemfields Group.
Diversification Opportunities for US Physical and Gemfields Group
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between UPH and Gemfields is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding US Physical Therapy and Gemfields Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemfields Group and US Physical 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 US Physical Therapy are associated (or correlated) with Gemfields Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemfields Group has no effect on the direction of US Physical i.e., US Physical and Gemfields Group go up and down completely randomly.
Pair Corralation between US Physical and Gemfields Group
Assuming the 90 days horizon US Physical Therapy is expected to generate 0.17 times more return on investment than Gemfields Group. However, US Physical Therapy is 5.73 times less risky than Gemfields Group. It trades about -0.04 of its potential returns per unit of risk. Gemfields Group Limited is currently generating about -0.22 per unit of risk. If you would invest 8,750 in US Physical Therapy on October 28, 2024 and sell it today you would lose (100.00) from holding US Physical Therapy or give up 1.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
US Physical Therapy vs. Gemfields Group Limited
Performance |
| Timeline |
| US Physical Therapy |
| Gemfields Group |
US Physical and Gemfields Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with US Physical and Gemfields Group
The main advantage of trading using opposite US Physical and Gemfields Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if US Physical position performs unexpectedly, Gemfields Group 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 Gemfields Group will offset losses from the drop in Gemfields Group's long position.| US Physical vs. Fresenius Medical Care | US Physical vs. Chemed | US Physical vs. Superior Plus Corp | US Physical vs. Origin Agritech |
| Gemfields Group vs. Darden Restaurants | Gemfields Group vs. RCI Hospitality Holdings | Gemfields Group vs. OPKO HEALTH | Gemfields Group vs. US Physical Therapy |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |