Correlation Between Induction Healthcare and Grand Vision

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Can any of the company-specific risk be diversified away by investing in both Induction Healthcare and Grand Vision 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 Induction Healthcare and Grand Vision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Induction Healthcare Group and Grand Vision Media, you can compare the effects of market volatilities on Induction Healthcare and Grand Vision 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 Induction Healthcare with a short position of Grand Vision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Induction Healthcare and Grand Vision.

Diversification Opportunities for Induction Healthcare and Grand Vision

InductionGrandDiversified AwayInductionGrandDiversified Away100%
-0.19
  Correlation Coefficient

Good diversification

The 3 months correlation between Induction and Grand is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Induction Healthcare Group and Grand Vision Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Vision Media and Induction 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 Induction Healthcare Group are associated (or correlated) with Grand Vision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Vision Media has no effect on the direction of Induction Healthcare i.e., Induction Healthcare and Grand Vision go up and down completely randomly.

Pair Corralation between Induction Healthcare and Grand Vision

If you would invest  750.00  in Induction Healthcare Group on September 29, 2024 and sell it today you would earn a total of  150.00  from holding Induction Healthcare Group or generate 20.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Induction Healthcare Group  vs.  Grand Vision Media

 Performance 
JavaScript chart by amCharts 3.21.15OctNovDec -20-100102030
JavaScript chart by amCharts 3.21.15INHC GVMH
       Timeline  
Induction Healthcare 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Induction Healthcare Group are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Induction Healthcare unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecDec6.577.588.599.510
Grand Vision Media 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Grand Vision Media has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Grand Vision is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15NovDecDec0.80.850.90.951

Induction Healthcare and Grand Vision Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-10.01-7.5-4.98-2.470.04412.655.297.9410.58 0.0200.0250.0300.035
JavaScript chart by amCharts 3.21.15INHC GVMH
       Returns  

Pair Trading with Induction Healthcare and Grand Vision

The main advantage of trading using opposite Induction Healthcare and Grand Vision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Induction Healthcare position performs unexpectedly, Grand Vision 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 Grand Vision will offset losses from the drop in Grand Vision's long position.
The idea behind Induction Healthcare Group and Grand Vision Media 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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