Correlation Between Ametek and MyHealthChecked Plc

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

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

Diversification Opportunities for Ametek and MyHealthChecked Plc

-0.64

Correlation Coefficient

Ametek  MyHealthChecked Plc

Excellent diversification

The 3 months correlation between Ametek and MyHealthChecked is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Ametek Inc and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and Ametek 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 Ametek Inc 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 Ametek i.e., Ametek and MyHealthChecked Plc go up and down completely randomly.

Pair Corralation between Ametek and MyHealthChecked Plc

Assuming the 90 days trading horizon Ametek is expected to generate 1.18 times less return on investment than MyHealthChecked Plc. But when comparing it to its historical volatility, Ametek Inc is 1.88 times less risky than MyHealthChecked Plc. It trades about 0.07 of its potential returns per unit of risk. MyHealthChecked Plc is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  1,225  in MyHealthChecked Plc on October 9, 2024 and sell it today you would earn a total of  75.00  from holding MyHealthChecked Plc or generate 6.12% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Ametek Inc  vs.  MyHealthChecked Plc

Ametek Inc

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Ametek Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Ametek may actually be approaching a critical reversion point that can send shares even higher in February 2025.

MyHealthChecked Plc

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in MyHealthChecked Plc are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, MyHealthChecked Plc may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Ametek and MyHealthChecked Plc

The main advantage of trading using opposite Ametek and MyHealthChecked Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ametek 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 Ametek Inc 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.