diversifiable risk of combining Healthcare Services and Global Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Healthcare Services Group and Global Healthcare REIT, you can compare the effects of market volatilities on Healthcare Services and Global 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 Healthcare Services with a short position of Global Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Healthcare Services and Global Healthcare.
Diversification Opportunities for Healthcare Services and Global Healthcare
Pair Corralation between Healthcare Services and Global Healthcare
Given the investment horizon of 90 days Healthcare Services Group is expected to generate 0.97 times more return on investment than Global Healthcare. However, Healthcare Services Group is 1.03 times less risky than Global Healthcare. It trades about 0.2 of its potential returns per unit of risk. Global Healthcare REIT is currently generating about -0.02 per unit of risk. If you would invest 975.00 in Healthcare Services Group on November 27, 2023 and sell it today you would earn a total of 253.00 from holding Healthcare Services Group or generate 25.95% return on investment over 90 days.
|3 Months [change]
Healthcare Services Group vs. Global Healthcare REIT
Healthcare Services and Global Healthcare Volatility Contrast
Pair Trading with Healthcare Services and Global HealthcareThe main advantage of trading using opposite Healthcare Services and Global Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Healthcare Services position performs unexpectedly, Global 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 Global Healthcare will offset losses from the drop in Global Healthcare's long position. The idea behind Healthcare Services Group and Global Healthcare REIT 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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