Correlation Between Regional Health and NewGenIvf Group

Can any of the company-specific risk be diversified away by investing in both Regional Health and NewGenIvf Group 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 Regional Health and NewGenIvf Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Regional Health Properties and NewGenIvf Group Limited, you can compare the effects of market volatilities on Regional Health and NewGenIvf Group 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 Regional Health with a short position of NewGenIvf Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regional Health and NewGenIvf Group.

Diversification Opportunities for Regional Health and NewGenIvf Group

-0.36

Correlation Coefficient

Regional Health  NewGenIvf Group

Very good diversification

The 3 months correlation between Regional and NewGenIvf is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Regional Health Properties and NewGenIvf Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NewGenIvf Group and Regional 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 Regional Health Properties are associated (or correlated) with NewGenIvf Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NewGenIvf Group has no effect on the direction of Regional Health i.e., Regional Health and NewGenIvf Group go up and down completely randomly.

Pair Corralation between Regional Health and NewGenIvf Group

Considering the 90-day investment horizon Regional Health Properties is expected to under-perform the NewGenIvf Group. But the stock apears to be less risky and, when comparing its historical volatility, Regional Health Properties is 6.07 times less risky than NewGenIvf Group. The stock trades about -0.01 of its potential returns per unit of risk. The NewGenIvf Group Limited is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  2.50  in NewGenIvf Group Limited on September 13, 2024 and sell it today you would earn a total of  2.24  from holding NewGenIvf Group Limited or generate 89.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	54.77%
Values	Daily Returns

Regional Health Properties  vs.  NewGenIvf Group Limited

Regional Health Prop

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Regional Health Properties has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound technical indicators, Regional Health is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

NewGenIvf Group

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in NewGenIvf Group Limited are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain technical and fundamental indicators, NewGenIvf Group showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Regional Health and NewGenIvf Group

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

The idea behind Regional Health Properties and NewGenIvf Group Limited 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.