Correlation Between Universal Health and EPSILON HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Universal Health and EPSILON HEALTHCARE 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 Universal Health and EPSILON HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Health Realty and EPSILON HEALTHCARE LTD, you can compare the effects of market volatilities on Universal Health and EPSILON HEALTHCARE 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 Universal Health with a short position of EPSILON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Health and EPSILON HEALTHCARE.
Diversification Opportunities for Universal Health and EPSILON HEALTHCARE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Universal and EPSILON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Universal Health Realty and EPSILON HEALTHCARE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPSILON HEALTHCARE LTD and Universal Health 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 Universal Health Realty are associated (or correlated) with EPSILON HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPSILON HEALTHCARE LTD has no effect on the direction of Universal Health i.e., Universal Health and EPSILON HEALTHCARE go up and down completely randomly.
Pair Corralation between Universal Health and EPSILON HEALTHCARE
If you would invest 3,487 in Universal Health Realty on October 28, 2024 and sell it today you would earn a total of 130.00 from holding Universal Health Realty or generate 3.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.0% |
| Values | Daily Returns |
Universal Health Realty vs. EPSILON HEALTHCARE LTD
Performance |
| Timeline |
| Universal Health Realty |
| EPSILON HEALTHCARE LTD |
Universal Health and EPSILON HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Health and EPSILON HEALTHCARE
The main advantage of trading using opposite Universal Health and EPSILON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Health position performs unexpectedly, EPSILON HEALTHCARE 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 EPSILON HEALTHCARE will offset losses from the drop in EPSILON HEALTHCARE's long position.| Universal Health vs. Omega Healthcare Investors | Universal Health vs. Superior Plus Corp | Universal Health vs. Origin Agritech | Universal Health vs. Identiv |
| EPSILON HEALTHCARE vs. Scottish Mortgage Investment | EPSILON HEALTHCARE vs. Universal Insurance Holdings | EPSILON HEALTHCARE vs. Virtus Investment Partners | EPSILON HEALTHCARE vs. Reinsurance Group of |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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