Correlation Between Universal Health and Amicorp FS
Can any of the company-specific risk be diversified away by investing in both Universal Health and Amicorp FS 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 Universal Health and Amicorp FS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Universal Health Services and Amicorp FS PLC, you can compare the effects of market volatilities on Universal Health and Amicorp FS 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 Universal Health with a short position of Amicorp FS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Universal Health and Amicorp FS.
Diversification Opportunities for Universal Health and Amicorp FS
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Universal and Amicorp is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Universal Health Services and Amicorp FS PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amicorp FS PLC and Universal Health 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 Universal Health Services are associated (or correlated) with Amicorp FS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amicorp FS PLC has no effect on the direction of Universal Health i.e., Universal Health and Amicorp FS go up and down completely randomly.
Pair Corralation between Universal Health and Amicorp FS
Assuming the 90 days trading horizon Universal Health Services is expected to generate 20.34 times more return on investment than Amicorp FS. However, Universal Health is 20.34 times more volatile than Amicorp FS PLC. It trades about 0.32 of its potential returns per unit of risk. Amicorp FS PLC is currently generating about 0.12 per unit of risk. If you would invest 18,107 in Universal Health Services on August 31, 2025 and sell it today you would earn a total of 6,273 from holding Universal Health Services or generate 34.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 96.92% |
| Values | Daily Returns |
Universal Health Services vs. Amicorp FS PLC
Performance |
| Timeline |
| Universal Health Services |
| Amicorp FS PLC |
Universal Health and Amicorp FS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Universal Health and Amicorp FS
The main advantage of trading using opposite Universal Health and Amicorp FS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Universal Health position performs unexpectedly, Amicorp FS 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 Amicorp FS will offset losses from the drop in Amicorp FS's long position.| Universal Health vs. Rightmove PLC | Universal Health vs. VeriSign | Universal Health vs. Bioventix | Universal Health vs. Sure Ventures PLC |
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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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