Correlation Between H+M HEN+MAUUNSPADR and EHEALTH
Can any of the company-specific risk be diversified away by investing in both H+M HEN+MAUUNSPADR and EHEALTH 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 H+M HEN+MAUUNSPADR and EHEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HM HENMAUUNSPADR 15 and EHEALTH, you can compare the effects of market volatilities on H+M HEN+MAUUNSPADR and EHEALTH 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 H+M HEN+MAUUNSPADR with a short position of EHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of H+M HEN+MAUUNSPADR and EHEALTH.
Diversification Opportunities for H+M HEN+MAUUNSPADR and EHEALTH
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between H+M and EHEALTH is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding HM HENMAUUNSPADR 15 and EHEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EHEALTH and H+M HEN+MAUUNSPADR 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 HM HENMAUUNSPADR 15 are associated (or correlated) with EHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EHEALTH has no effect on the direction of H+M HEN+MAUUNSPADR i.e., H+M HEN+MAUUNSPADR and EHEALTH go up and down completely randomly.
Pair Corralation between H+M HEN+MAUUNSPADR and EHEALTH
Assuming the 90 days trading horizon HM HENMAUUNSPADR 15 is expected to under-perform the EHEALTH. But the stock apears to be less risky and, when comparing its historical volatility, HM HENMAUUNSPADR 15 is 1.85 times less risky than EHEALTH. The stock trades about 0.0 of its potential returns per unit of risk. The EHEALTH is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 329.00 in EHEALTH on September 6, 2024 and sell it today you would earn a total of 202.00 from holding EHEALTH or generate 61.4% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
HM HENMAUUNSPADR 15 vs. EHEALTH
Performance |
Timeline |
H+M HEN+MAUUNSPADR |
EHEALTH |
H+M HEN+MAUUNSPADR and EHEALTH Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with H+M HEN+MAUUNSPADR and EHEALTH
The main advantage of trading using opposite H+M HEN+MAUUNSPADR and EHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if H+M HEN+MAUUNSPADR position performs unexpectedly, EHEALTH 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 EHEALTH will offset losses from the drop in EHEALTH's long position.H+M HEN+MAUUNSPADR vs. ALERION CLEANPOWER | H+M HEN+MAUUNSPADR vs. KENEDIX OFFICE INV | H+M HEN+MAUUNSPADR vs. Jacquet Metal Service | H+M HEN+MAUUNSPADR vs. LION ONE METALS |
EHEALTH vs. Ares Management Corp | EHEALTH vs. Cardinal Health | EHEALTH vs. CeoTronics AG | EHEALTH vs. CompuGroup Medical SE |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |