Correlation Between HCA Holdings and United States
Can any of the company-specific risk be diversified away by investing in both HCA Holdings and United States 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 HCA Holdings and United States into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HCA Holdings and United States Oil, you can compare the effects of market volatilities on HCA Holdings and United States 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 HCA Holdings with a short position of United States. Check out your portfolio center. Please also check ongoing floating volatility patterns of HCA Holdings and United States.
Diversification Opportunities for HCA Holdings and United States
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between HCA and United is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding HCA Holdings and United States Oil in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United States Oil and HCA Holdings 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 HCA Holdings are associated (or correlated) with United States. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United States Oil has no effect on the direction of HCA Holdings i.e., HCA Holdings and United States go up and down completely randomly.
Pair Corralation between HCA Holdings and United States
Considering the 90-day investment horizon HCA Holdings is expected to under-perform the United States. But the etf apears to be less risky and, when comparing its historical volatility, HCA Holdings is 1.09 times less risky than United States. The etf trades about -0.23 of its potential returns per unit of risk. The United States Oil is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 7,798 in United States Oil on January 18, 2024 and sell it today you would earn a total of 93.00 from holding United States Oil or generate 1.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
HCA Holdings vs. United States Oil
Performance |
| Timeline |
| HCA Holdings |
| United States Oil |
HCA Holdings and United States Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HCA Holdings and United States
The main advantage of trading using opposite HCA Holdings and United States positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HCA Holdings position performs unexpectedly, United States 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 United States will offset losses from the drop in United States' long position.| HCA Holdings vs. Acadia Healthcare | HCA Holdings vs. Tenet Healthcare | HCA Holdings vs. US Physicalrapy | HCA Holdings vs. DaVita HealthCare Partners |
| United States vs. United States Natural | United States vs. SPDR Gold Shares | United States vs. ProShares Ultra Bloomberg | United States vs. Energy Select Sector |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |