Correlation Between Forgame Holdings and Universal Health
Can any of the company-specific risk be diversified away by investing in both Forgame Holdings and Universal Health 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 Forgame Holdings and Universal Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Forgame Holdings and Universal Health Realty, you can compare the effects of market volatilities on Forgame Holdings and Universal Health 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 Forgame Holdings with a short position of Universal Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Forgame Holdings and Universal Health.
Diversification Opportunities for Forgame Holdings and Universal Health
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Forgame and Universal is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Forgame Holdings and Universal Health Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Universal Health Realty and Forgame Holdings 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 Forgame Holdings are associated (or correlated) with Universal Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Universal Health Realty has no effect on the direction of Forgame Holdings i.e., Forgame Holdings and Universal Health go up and down completely randomly.
Pair Corralation between Forgame Holdings and Universal Health
Assuming the 90 days trading horizon Forgame Holdings is expected to under-perform the Universal Health. In addition to that, Forgame Holdings is 1.99 times more volatile than Universal Health Realty. It trades about -0.03 of its total potential returns per unit of risk. Universal Health Realty is currently generating about 0.06 per unit of volatility. If you would invest 3,386 in Universal Health Realty on August 29, 2025 and sell it today you would earn a total of 152.00 from holding Universal Health Realty or generate 4.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Forgame Holdings vs. Universal Health Realty
Performance |
| Timeline |
| Forgame Holdings |
| Universal Health Realty |
Forgame Holdings and Universal Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Forgame Holdings and Universal Health
The main advantage of trading using opposite Forgame Holdings and Universal Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Forgame Holdings position performs unexpectedly, Universal Health 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 Universal Health will offset losses from the drop in Universal Health's long position.| Forgame Holdings vs. SIDETRADE EO 1 | Forgame Holdings vs. Canon Marketing Japan | Forgame Holdings vs. TRADEDOUBLER AB SK | Forgame Holdings vs. Suntory Beverage Food |
| Universal Health vs. Healthpeak Properties | Universal Health vs. Omega Healthcare Investors | Universal Health vs. Medical Properties Trust | Universal Health vs. Sabra Health Care |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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