Correlation Between Seche Environnement and MyHealthChecked Plc

Can any of the company-specific risk be diversified away by investing in both Seche Environnement and MyHealthChecked Plc 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 Seche Environnement and MyHealthChecked Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Seche Environnement SA and MyHealthChecked Plc, you can compare the effects of market volatilities on Seche Environnement and MyHealthChecked Plc 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 Seche Environnement with a short position of MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seche Environnement and MyHealthChecked Plc.

Diversification Opportunities for Seche Environnement and MyHealthChecked Plc

0.26

Correlation Coefficient

Seche Environnement  MyHealthChecked Plc

Modest diversification

The 3 months correlation between Seche and MyHealthChecked is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Seche Environnement SA and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and Seche Environnement 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 Seche Environnement SA are associated (or correlated) with MyHealthChecked Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyHealthChecked Plc has no effect on the direction of Seche Environnement i.e., Seche Environnement and MyHealthChecked Plc go up and down completely randomly.

Pair Corralation between Seche Environnement and MyHealthChecked Plc

Assuming the 90 days trading horizon Seche Environnement SA is expected to under-perform the MyHealthChecked Plc. But the stock apears to be less risky and, when comparing its historical volatility, Seche Environnement SA is 2.21 times less risky than MyHealthChecked Plc. The stock trades about -0.09 of its potential returns per unit of risk. The MyHealthChecked Plc is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,125  in MyHealthChecked Plc on September 12, 2024 and sell it today you would earn a total of  0.00  from holding MyHealthChecked Plc or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Seche Environnement SA  vs.  MyHealthChecked Plc

Seche Environnement

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Seche Environnement SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

MyHealthChecked Plc

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MyHealthChecked Plc are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, MyHealthChecked Plc is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Seche Environnement and MyHealthChecked Plc

The main advantage of trading using opposite Seche Environnement and MyHealthChecked Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seche Environnement position performs unexpectedly, MyHealthChecked Plc 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 MyHealthChecked Plc will offset losses from the drop in MyHealthChecked Plc's long position.

The idea behind Seche Environnement SA and MyHealthChecked Plc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.