Correlation Between Forgame Holdings and Universal Health

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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 Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Forgame Holdings  vs.  Universal Health Realty

 Performance 
       Timeline  
Forgame Holdings 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Forgame Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Forgame Holdings is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
Universal Health Realty 

Risk-Adjusted Performance

Soft

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Universal Health Realty are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable basic indicators, Universal Health is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

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.
The idea behind Forgame Holdings and Universal Health Realty 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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