Correlation Between Yatharth Hospital and Hisar Metal

Can any of the company-specific risk be diversified away by investing in both Yatharth Hospital and Hisar Metal 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 Yatharth Hospital and Hisar Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Yatharth Hospital Trauma and Hisar Metal Industries, you can compare the effects of market volatilities on Yatharth Hospital and Hisar Metal 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 Yatharth Hospital with a short position of Hisar Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yatharth Hospital and Hisar Metal.

Diversification Opportunities for Yatharth Hospital and Hisar Metal

-0.18

Correlation Coefficient

Yatharth Hospital  Hisar Metal

Good diversification

The 3 months correlation between Yatharth and Hisar is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Yatharth Hospital Trauma and Hisar Metal Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hisar Metal Industries and Yatharth Hospital 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 Yatharth Hospital Trauma are associated (or correlated) with Hisar Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hisar Metal Industries has no effect on the direction of Yatharth Hospital i.e., Yatharth Hospital and Hisar Metal go up and down completely randomly.

Pair Corralation between Yatharth Hospital and Hisar Metal

Assuming the 90 days trading horizon Yatharth Hospital Trauma is expected to generate 0.77 times more return on investment than Hisar Metal. However, Yatharth Hospital Trauma is 1.3 times less risky than Hisar Metal. It trades about 0.07 of its potential returns per unit of risk. Hisar Metal Industries is currently generating about 0.04 per unit of risk. If you would invest  33,385  in Yatharth Hospital Trauma on October 4, 2024 and sell it today you would earn a total of  23,280  from holding Yatharth Hospital Trauma or generate 69.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	71.4%
Values	Daily Returns

Yatharth Hospital Trauma  vs.  Hisar Metal Industries

Yatharth Hospital Trauma

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Yatharth Hospital Trauma are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Yatharth Hospital is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Hisar Metal Industries

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Hisar Metal Industries are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain basic indicators, Hisar Metal may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Yatharth Hospital and Hisar Metal

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

The idea behind Yatharth Hospital Trauma and Hisar Metal Industries 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.