Correlation Between MEDICAL FACILITIES and Antofagasta Plc
Can any of the company-specific risk be diversified away by investing in both MEDICAL FACILITIES and Antofagasta 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 MEDICAL FACILITIES and Antofagasta Plc into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MEDICAL FACILITIES NEW and Antofagasta plc, you can compare the effects of market volatilities on MEDICAL FACILITIES and Antofagasta 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 MEDICAL FACILITIES with a short position of Antofagasta Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of MEDICAL FACILITIES and Antofagasta Plc.
Diversification Opportunities for MEDICAL FACILITIES and Antofagasta Plc
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between MEDICAL and Antofagasta is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding MEDICAL FACILITIES NEW and Antofagasta plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Antofagasta plc and MEDICAL FACILITIES 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 MEDICAL FACILITIES NEW are associated (or correlated) with Antofagasta Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Antofagasta plc has no effect on the direction of MEDICAL FACILITIES i.e., MEDICAL FACILITIES and Antofagasta Plc go up and down completely randomly.
Pair Corralation between MEDICAL FACILITIES and Antofagasta Plc
Assuming the 90 days horizon MEDICAL FACILITIES NEW is expected to generate 0.96 times more return on investment than Antofagasta Plc. However, MEDICAL FACILITIES NEW is 1.04 times less risky than Antofagasta Plc. It trades about 0.12 of its potential returns per unit of risk. Antofagasta plc is currently generating about -0.12 per unit of risk. If you would invest 901.00 in MEDICAL FACILITIES NEW on September 25, 2024 and sell it today you would earn a total of 139.00 from holding MEDICAL FACILITIES NEW or generate 15.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Significant |
Accuracy | 98.46% |
Values | Daily Returns |
MEDICAL FACILITIES NEW vs. Antofagasta plc
Performance |
Timeline |
MEDICAL FACILITIES NEW |
Antofagasta plc |
MEDICAL FACILITIES and Antofagasta Plc Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with MEDICAL FACILITIES and Antofagasta Plc
The main advantage of trading using opposite MEDICAL FACILITIES and Antofagasta Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MEDICAL FACILITIES position performs unexpectedly, Antofagasta 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 Antofagasta Plc will offset losses from the drop in Antofagasta Plc's long position.MEDICAL FACILITIES vs. Ramsay Health Care | MEDICAL FACILITIES vs. Medicover AB | MEDICAL FACILITIES vs. Charoen Pokphand Foods |
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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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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