Correlation Between GAZTRTECHNIUADR1/5EO01 and HEALTHCARE REAL

Can any of the company-specific risk be diversified away by investing in both GAZTRTECHNIUADR1/5EO01 and HEALTHCARE REAL 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 GAZTRTECHNIUADR1/5EO01 and HEALTHCARE REAL into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GAZTRTECHNIUADR15EO01 and HEALTHCARE REAL A, you can compare the effects of market volatilities on GAZTRTECHNIUADR1/5EO01 and HEALTHCARE REAL 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 GAZTRTECHNIUADR1/5EO01 with a short position of HEALTHCARE REAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of GAZTRTECHNIUADR1/5EO01 and HEALTHCARE REAL.

Diversification Opportunities for GAZTRTECHNIUADR1/5EO01 and HEALTHCARE REAL

0.42

Correlation Coefficient

GAZTRTECHNIUADR1/5EO01  HEALTHCARE REAL

Very weak diversification

The 3 months correlation between GAZTRTECHNIUADR1/5EO01 and HEALTHCARE is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding GAZTRTECHNIUADR15EO01 and HEALTHCARE REAL A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEALTHCARE REAL A and GAZTRTECHNIUADR1/5EO01 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 GAZTRTECHNIUADR15EO01 are associated (or correlated) with HEALTHCARE REAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEALTHCARE REAL A has no effect on the direction of GAZTRTECHNIUADR1/5EO01 i.e., GAZTRTECHNIUADR1/5EO01 and HEALTHCARE REAL go up and down completely randomly.

Pair Corralation between GAZTRTECHNIUADR1/5EO01 and HEALTHCARE REAL

If you would invest  1,501  in HEALTHCARE REAL A on October 8, 2024 and sell it today you would earn a total of  99.00  from holding HEALTHCARE REAL A or generate 6.6% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	0.81%
Values	Daily Returns

GAZTRTECHNIUADR15EO01  vs.  HEALTHCARE REAL A

GAZTRTECHNIUADR1/5EO01

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days GAZTRTECHNIUADR15EO01 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly weak technical and fundamental indicators, GAZTRTECHNIUADR1/5EO01 may actually be approaching a critical reversion point that can send shares even higher in February 2025.

HEALTHCARE REAL A

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in HEALTHCARE REAL A are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, HEALTHCARE REAL is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GAZTRTECHNIUADR1/5EO01 and HEALTHCARE REAL

The main advantage of trading using opposite GAZTRTECHNIUADR1/5EO01 and HEALTHCARE REAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GAZTRTECHNIUADR1/5EO01 position performs unexpectedly, HEALTHCARE REAL 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 HEALTHCARE REAL will offset losses from the drop in HEALTHCARE REAL's long position.

The idea behind GAZTRTECHNIUADR15EO01 and HEALTHCARE REAL A 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.