Correlation Between MyHealthChecked Plc and Beazer Homes

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Can any of the company-specific risk be diversified away by investing in both MyHealthChecked Plc and Beazer Homes 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 MyHealthChecked Plc and Beazer Homes into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MyHealthChecked Plc and Beazer Homes USA, you can compare the effects of market volatilities on MyHealthChecked Plc and Beazer Homes 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 MyHealthChecked Plc with a short position of Beazer Homes. Check out your portfolio center. Please also check ongoing floating volatility patterns of MyHealthChecked Plc and Beazer Homes.

Diversification Opportunities for MyHealthChecked Plc and Beazer Homes

-0.26
  Correlation Coefficient

Very good diversification

The 3 months correlation between MyHealthChecked and Beazer is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding MyHealthChecked Plc and Beazer Homes USA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beazer Homes USA and MyHealthChecked Plc 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 MyHealthChecked Plc are associated (or correlated) with Beazer Homes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beazer Homes USA has no effect on the direction of MyHealthChecked Plc i.e., MyHealthChecked Plc and Beazer Homes go up and down completely randomly.

Pair Corralation between MyHealthChecked Plc and Beazer Homes

Assuming the 90 days trading horizon MyHealthChecked Plc is expected to under-perform the Beazer Homes. But the stock apears to be less risky and, when comparing its historical volatility, MyHealthChecked Plc is 1.17 times less risky than Beazer Homes. The stock trades about -0.23 of its potential returns per unit of risk. The Beazer Homes USA is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  2,476  in Beazer Homes USA on July 27, 2025 and sell it today you would lose (33.00) from holding Beazer Homes USA or give up 1.33% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy62.5%
ValuesDaily Returns

MyHealthChecked Plc  vs.  Beazer Homes USA

 Performance 
       Timeline  
MyHealthChecked Plc 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days MyHealthChecked Plc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain rather sound which may send shares a bit higher in November 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.
Beazer Homes USA 

Risk-Adjusted Performance

Weakest

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

MyHealthChecked Plc and Beazer Homes Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with MyHealthChecked Plc and Beazer Homes

The main advantage of trading using opposite MyHealthChecked Plc and Beazer Homes positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MyHealthChecked Plc position performs unexpectedly, Beazer Homes 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 Beazer Homes will offset losses from the drop in Beazer Homes' long position.
The idea behind MyHealthChecked Plc and Beazer Homes USA 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.
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.

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