Correlation Between Global Wholehealth and Thermo Fisher

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

By analyzing existing cross correlation between Global Wholehealth Partners and Thermo Fisher Scientific, you can compare the effects of market volatilities on Global Wholehealth and Thermo Fisher 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 Global Wholehealth with a short position of Thermo Fisher. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Wholehealth and Thermo Fisher.

Diversification Opportunities for Global Wholehealth and Thermo Fisher

0.0

Correlation Coefficient

Global Wholehealth  Thermo Fisher

Pay attention - limited upside

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

Pair Corralation between Global Wholehealth and Thermo Fisher

If you would invest  0.01  in Global Wholehealth Partners on January 24, 2024 and sell it today you would earn a total of  0.00  from holding Global Wholehealth Partners or generate 0.0% return on investment over 90 days.

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

Global Wholehealth Partners  vs.  Thermo Fisher Scientific

Global Wholehealth

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Global Wholehealth Partners has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical indicators, Global Wholehealth is not utilizing all of its potentials. The current stock price agitation, may contribute to short-term losses for the retail investors.

Thermo Fisher Scientific

Risk-Adjusted Performance

2 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Thermo Fisher Scientific are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy primary indicators, Thermo Fisher is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Global Wholehealth and Thermo Fisher

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

The idea behind Global Wholehealth Partners and Thermo Fisher Scientific 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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.