Correlation Between Federal Home and HEALTHBEACON

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

By analyzing existing cross correlation between Federal Home Loan and HEALTHBEACON EO 0025, you can compare the effects of market volatilities on Federal Home and HEALTHBEACON 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 Federal Home with a short position of HEALTHBEACON. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal Home and HEALTHBEACON.

Diversification Opportunities for Federal Home and HEALTHBEACON

0.0

Correlation Coefficient

Federal Home  HEALTHBEACON

Pay attention - limited upside

The 3 months correlation between Federal and HEALTHBEACON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Federal Home Loan and HEALTHBEACON EO 0025 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEALTHBEACON EO 0025 and Federal Home 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 Federal Home Loan are associated (or correlated) with HEALTHBEACON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEALTHBEACON EO 0025 has no effect on the direction of Federal Home i.e., Federal Home and HEALTHBEACON go up and down completely randomly.

Pair Corralation between Federal Home and HEALTHBEACON

If you would invest  128.00  in Federal Home Loan on March 5, 2024 and sell it today you would earn a total of  8.00  from holding Federal Home Loan or generate 6.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	85.71%
Values	Daily Returns

Federal Home Loan  vs.  HEALTHBEACON EO 0025

Federal Home Loan

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Federal Home Loan are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, Federal Home reported solid returns over the last few months and may actually be approaching a breakup point.

HEALTHBEACON EO 0025

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days HEALTHBEACON EO 0025 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, HEALTHBEACON is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Federal Home and HEALTHBEACON

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

The idea behind Federal Home Loan and HEALTHBEACON EO 0025 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.