Correlation Between Amicorp FS and Worldwide Healthcare
Can any of the company-specific risk be diversified away by investing in both Amicorp FS and Worldwide Healthcare 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 Amicorp FS and Worldwide Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amicorp FS PLC and Worldwide Healthcare Trust, you can compare the effects of market volatilities on Amicorp FS and Worldwide 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 Amicorp FS with a short position of Worldwide Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amicorp FS and Worldwide Healthcare.
Diversification Opportunities for Amicorp FS and Worldwide Healthcare
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Amicorp and Worldwide is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Amicorp FS PLC and Worldwide Healthcare Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worldwide Healthcare and Amicorp FS 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 Amicorp FS PLC are associated (or correlated) with Worldwide Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Worldwide Healthcare has no effect on the direction of Amicorp FS i.e., Amicorp FS and Worldwide Healthcare go up and down completely randomly.
Pair Corralation between Amicorp FS and Worldwide Healthcare
Assuming the 90 days trading horizon Amicorp FS is expected to generate 23.24 times less return on investment than Worldwide Healthcare. But when comparing it to its historical volatility, Amicorp FS PLC is 11.41 times less risky than Worldwide Healthcare. It trades about 0.13 of its potential returns per unit of risk. Worldwide Healthcare Trust is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 32,750 in Worldwide Healthcare Trust on August 20, 2025 and sell it today you would earn a total of 4,850 from holding Worldwide Healthcare Trust or generate 14.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amicorp FS PLC vs. Worldwide Healthcare Trust
Performance |
| Timeline |
| Amicorp FS PLC |
| Worldwide Healthcare |
Amicorp FS and Worldwide Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amicorp FS and Worldwide Healthcare
The main advantage of trading using opposite Amicorp FS and Worldwide Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amicorp FS position performs unexpectedly, Worldwide 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 Worldwide Healthcare will offset losses from the drop in Worldwide Healthcare's long position.The idea behind Amicorp FS PLC and Worldwide Healthcare Trust 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.| Worldwide Healthcare vs. Uniper SE | Worldwide Healthcare vs. London Security Plc | Worldwide Healthcare vs. Amicorp FS PLC | Worldwide Healthcare vs. Ikigai Ventures |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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