Correlation Between CM Hospitalar and Prologis
Can any of the company-specific risk be diversified away by investing in both CM Hospitalar and Prologis 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 CM Hospitalar and Prologis into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CM Hospitalar SA and Prologis, you can compare the effects of market volatilities on CM Hospitalar and Prologis 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 CM Hospitalar with a short position of Prologis. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM Hospitalar and Prologis.
Diversification Opportunities for CM Hospitalar and Prologis
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between VVEO3 and Prologis is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding CM Hospitalar SA and Prologis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Prologis and CM Hospitalar 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 CM Hospitalar SA are associated (or correlated) with Prologis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Prologis has no effect on the direction of CM Hospitalar i.e., CM Hospitalar and Prologis go up and down completely randomly.
Pair Corralation between CM Hospitalar and Prologis
Assuming the 90 days trading horizon CM Hospitalar SA is expected to under-perform the Prologis. In addition to that, CM Hospitalar is 2.31 times more volatile than Prologis. It trades about -0.24 of its total potential returns per unit of risk. Prologis is currently generating about 0.12 per unit of volatility. If you would invest 5,399 in Prologis on September 13, 2024 and sell it today you would earn a total of 221.00 from holding Prologis or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CM Hospitalar SA vs. Prologis
Performance |
| Timeline |
| CM Hospitalar SA |
| Prologis |
CM Hospitalar and Prologis Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CM Hospitalar and Prologis
The main advantage of trading using opposite CM Hospitalar and Prologis positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM Hospitalar position performs unexpectedly, Prologis 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 Prologis will offset losses from the drop in Prologis' long position.| CM Hospitalar vs. Fundo Investimento Imobiliario | CM Hospitalar vs. LESTE FDO INV | CM Hospitalar vs. Fras le SA | CM Hospitalar vs. Western Digital |
| Prologis vs. Mitsubishi UFJ Financial | Prologis vs. Bread Financial Holdings | Prologis vs. Cognizant Technology Solutions | Prologis vs. SVB Financial Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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