Correlation Between IHH Healthcare and Select Medical
Can any of the company-specific risk be diversified away by investing in both IHH Healthcare and Select Medical 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 IHH Healthcare and Select Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between IHH Healthcare Berhad and Select Medical Holdings, you can compare the effects of market volatilities on IHH Healthcare and Select Medical 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 IHH Healthcare with a short position of Select Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of IHH Healthcare and Select Medical.
Diversification Opportunities for IHH Healthcare and Select Medical
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between IHH and Select is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding IHH Healthcare Berhad and Select Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Select Medical Holdings and IHH Healthcare 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 IHH Healthcare Berhad are associated (or correlated) with Select Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Select Medical Holdings has no effect on the direction of IHH Healthcare i.e., IHH Healthcare and Select Medical go up and down completely randomly.
Pair Corralation between IHH Healthcare and Select Medical
If you would invest 119.00 in IHH Healthcare Berhad on September 24, 2024 and sell it today you would earn a total of 0.00 from holding IHH Healthcare Berhad or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 5.0% |
Values | Daily Returns |
IHH Healthcare Berhad vs. Select Medical Holdings
Performance |
Timeline |
IHH Healthcare Berhad |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Select Medical Holdings |
IHH Healthcare and Select Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with IHH Healthcare and Select Medical
The main advantage of trading using opposite IHH Healthcare and Select Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IHH Healthcare position performs unexpectedly, Select Medical 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 Select Medical will offset losses from the drop in Select Medical's long position.IHH Healthcare vs. Evolution Mining | IHH Healthcare vs. Reservoir Media | IHH Healthcare vs. Red Branch Technologies | IHH Healthcare vs. Emerson Radio |
Select Medical vs. The Ensign Group | Select Medical vs. Encompass Health Corp | Select Medical vs. InnovAge Holding Corp | Select Medical vs. Enhabit |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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