Correlation Between Tritax Big and Primary Health

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

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

Diversification Opportunities for Tritax Big and Primary Health

0.0

Correlation Coefficient

Tritax Big  Primary Health

Pay attention - limited upside

The 3 months correlation between Tritax and Primary is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tritax Big Box and Primary Health Properties in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Primary Health Properties and Tritax Big 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 Tritax Big Box are associated (or correlated) with Primary Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Primary Health Properties has no effect on the direction of Tritax Big i.e., Tritax Big and Primary Health go up and down completely randomly.

Pair Corralation between Tritax Big and Primary Health

If you would invest  9,133  in Primary Health Properties on December 22, 2024 and sell it today you would earn a total of  502.00  from holding Primary Health Properties or generate 5.5% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Tritax Big Box  vs.  Primary Health Properties

Tritax Big Box

Risk-Adjusted Performance

OK

Over the last 90 days Tritax Big Box has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Tritax Big is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Primary Health Properties

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Primary Health Properties are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound technical and fundamental indicators, Primary Health is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Tritax Big and Primary Health

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

The idea behind Tritax Big Box and Primary Health Properties 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.

Check out your portfolio center.

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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .