Correlation Between HYGEIA HC and UNIPHAR PLC

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

By analyzing existing cross correlation between HYGEIA HC HLDGS and UNIPHAR PLC EO, you can compare the effects of market volatilities on HYGEIA HC and UNIPHAR 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 HYGEIA HC with a short position of UNIPHAR PLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of HYGEIA HC and UNIPHAR PLC.

Diversification Opportunities for HYGEIA HC and UNIPHAR PLC

0.29

Correlation Coefficient

HYGEIA HC  UNIPHAR PLC

Modest diversification

The 3 months correlation between HYGEIA and UNIPHAR is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding HYGEIA HC HLDGS and UNIPHAR PLC EO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UNIPHAR PLC EO and HYGEIA HC 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 HYGEIA HC HLDGS are associated (or correlated) with UNIPHAR PLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UNIPHAR PLC EO has no effect on the direction of HYGEIA HC i.e., HYGEIA HC and UNIPHAR PLC go up and down completely randomly.

Pair Corralation between HYGEIA HC and UNIPHAR PLC

Assuming the 90 days horizon HYGEIA HC is expected to generate 14.15 times less return on investment than UNIPHAR PLC. But when comparing it to its historical volatility, HYGEIA HC HLDGS is 1.02 times less risky than UNIPHAR PLC. It trades about 0.01 of its potential returns per unit of risk. UNIPHAR PLC EO is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  190.00  in UNIPHAR PLC EO on December 20, 2024 and sell it today you would earn a total of  72.00  from holding UNIPHAR PLC EO or generate 37.89% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

HYGEIA HC HLDGS  vs.  UNIPHAR PLC EO

HYGEIA HC HLDGS

Risk-Adjusted Performance

Very Weak

Over the last 90 days HYGEIA HC HLDGS has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, HYGEIA HC is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

UNIPHAR PLC EO

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in UNIPHAR PLC EO are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, UNIPHAR PLC reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with HYGEIA HC and UNIPHAR PLC

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

The idea behind HYGEIA HC HLDGS and UNIPHAR PLC EO 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.