Correlation Between Hospital Mater and Lloyds Banking
Can any of the company-specific risk be diversified away by investing in both Hospital Mater and Lloyds Banking 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 Hospital Mater and Lloyds Banking into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hospital Mater Dei and Lloyds Banking Group, you can compare the effects of market volatilities on Hospital Mater and Lloyds Banking 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 Hospital Mater with a short position of Lloyds Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hospital Mater and Lloyds Banking.
Diversification Opportunities for Hospital Mater and Lloyds Banking
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Hospital and Lloyds is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hospital Mater Dei and Lloyds Banking Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lloyds Banking Group and Hospital Mater 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 Hospital Mater Dei are associated (or correlated) with Lloyds Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lloyds Banking Group has no effect on the direction of Hospital Mater i.e., Hospital Mater and Lloyds Banking go up and down completely randomly.
Pair Corralation between Hospital Mater and Lloyds Banking
Assuming the 90 days trading horizon Hospital Mater Dei is expected to under-perform the Lloyds Banking. In addition to that, Hospital Mater is 1.33 times more volatile than Lloyds Banking Group. It trades about -0.1 of its total potential returns per unit of risk. Lloyds Banking Group is currently generating about 0.11 per unit of volatility. If you would invest 1,043 in Lloyds Banking Group on October 9, 2024 and sell it today you would earn a total of 626.00 from holding Lloyds Banking Group or generate 60.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Hospital Mater Dei vs. Lloyds Banking Group
Performance |
Timeline |
Hospital Mater Dei |
Lloyds Banking Group |
Hospital Mater and Lloyds Banking Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hospital Mater and Lloyds Banking
The main advantage of trading using opposite Hospital Mater and Lloyds Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hospital Mater position performs unexpectedly, Lloyds Banking 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 Lloyds Banking will offset losses from the drop in Lloyds Banking's long position.Hospital Mater vs. HCA Healthcare, | Hospital Mater vs. Universal Health Services, | Hospital Mater vs. Energisa SA | Hospital Mater vs. BTG Pactual Logstica |
Lloyds Banking vs. Omega Healthcare Investors, | Lloyds Banking vs. JB Hunt Transport | Lloyds Banking vs. Applied Materials, | Lloyds Banking vs. MP Materials Corp |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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