Correlation Between CM Hospitalar and STAG Industrial,
Can any of the company-specific risk be diversified away by investing in both CM Hospitalar and STAG Industrial, 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 STAG Industrial, 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 STAG Industrial,, you can compare the effects of market volatilities on CM Hospitalar and STAG Industrial, 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 STAG Industrial,. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM Hospitalar and STAG Industrial,.
Diversification Opportunities for CM Hospitalar and STAG Industrial,
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between VVEO3 and STAG is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding CM Hospitalar SA and STAG Industrial, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STAG Industrial, 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 STAG Industrial,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STAG Industrial, has no effect on the direction of CM Hospitalar i.e., CM Hospitalar and STAG Industrial, go up and down completely randomly.
Pair Corralation between CM Hospitalar and STAG Industrial,
Assuming the 90 days trading horizon CM Hospitalar SA is expected to under-perform the STAG Industrial,. In addition to that, CM Hospitalar is 1.8 times more volatile than STAG Industrial,. It trades about -0.09 of its total potential returns per unit of risk. STAG Industrial, is currently generating about -0.07 per unit of volatility. If you would invest 4,348 in STAG Industrial, on October 30, 2024 and sell it today you would lose (248.00) from holding STAG Industrial, or give up 5.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CM Hospitalar SA vs. STAG Industrial,
Performance |
| Timeline |
| CM Hospitalar SA |
| STAG Industrial, |
CM Hospitalar and STAG Industrial, Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CM Hospitalar and STAG Industrial,
The main advantage of trading using opposite CM Hospitalar and STAG Industrial, positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CM Hospitalar position performs unexpectedly, STAG Industrial, 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 STAG Industrial, will offset losses from the drop in STAG Industrial,'s long position.| CM Hospitalar vs. Guidewire Software, | CM Hospitalar vs. Alaska Air Group, | CM Hospitalar vs. DENTSPLY SIRONA | CM Hospitalar vs. United Airlines Holdings |
| STAG Industrial, vs. JB Hunt Transport | STAG Industrial, vs. G2D Investments | STAG Industrial, vs. Cognizant Technology Solutions | STAG Industrial, vs. Take Two Interactive Software |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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