Correlation Between CM Hospitalar and HCA Healthcare,

Can any of the company-specific risk be diversified away by investing in both CM Hospitalar and HCA Healthcare, 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 CM Hospitalar and HCA Healthcare, into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CM Hospitalar SA and HCA Healthcare,, you can compare the effects of market volatilities on CM Hospitalar and HCA Healthcare, 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 CM Hospitalar with a short position of HCA Healthcare,. Check out your portfolio center. Please also check ongoing floating volatility patterns of CM Hospitalar and HCA Healthcare,.

Diversification Opportunities for CM Hospitalar and HCA Healthcare,

0.03

Correlation Coefficient

CM Hospitalar  HCA Healthcare,

Significant diversification

The 3 months correlation between VVEO3 and HCA is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding CM Hospitalar SA and HCA Healthcare, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HCA Healthcare, and CM Hospitalar 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 CM Hospitalar SA are associated (or correlated) with HCA Healthcare,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HCA Healthcare, has no effect on the direction of CM Hospitalar i.e., CM Hospitalar and HCA Healthcare, go up and down completely randomly.

Pair Corralation between CM Hospitalar and HCA Healthcare,

Assuming the 90 days trading horizon CM Hospitalar SA is expected to under-perform the HCA Healthcare,. In addition to that, CM Hospitalar is 3.13 times more volatile than HCA Healthcare,. It trades about -0.04 of its total potential returns per unit of risk. HCA Healthcare, is currently generating about 0.04 per unit of volatility. If you would invest  9,105  in HCA Healthcare, on October 22, 2024 and sell it today you would earn a total of  65.00  from holding HCA Healthcare, or generate 0.71% return on investment over 90 days.

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

CM Hospitalar SA  vs.  HCA Healthcare,

CM Hospitalar SA

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CM Hospitalar SA are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, CM Hospitalar may actually be approaching a critical reversion point that can send shares even higher in February 2025.

HCA Healthcare,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HCA Healthcare, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with CM Hospitalar and HCA Healthcare,

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

The idea behind CM Hospitalar SA and HCA Healthcare, 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.