Correlation Between Temple Bar and Worldwide Healthcare
Can any of the company-specific risk be diversified away by investing in both Temple Bar 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 Temple Bar and Worldwide Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Temple Bar Investment and Worldwide Healthcare Trust, you can compare the effects of market volatilities on Temple Bar 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 Temple Bar with a short position of Worldwide Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Temple Bar and Worldwide Healthcare.
Diversification Opportunities for Temple Bar and Worldwide Healthcare
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Temple and Worldwide is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Temple Bar Investment and Worldwide Healthcare Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Worldwide Healthcare and Temple Bar 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 Temple Bar Investment 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 Temple Bar i.e., Temple Bar and Worldwide Healthcare go up and down completely randomly.
Pair Corralation between Temple Bar and Worldwide Healthcare
Assuming the 90 days trading horizon Temple Bar is expected to generate 1.28 times less return on investment than Worldwide Healthcare. But when comparing it to its historical volatility, Temple Bar Investment is 1.22 times less risky than Worldwide Healthcare. It trades about 0.18 of its potential returns per unit of risk. Worldwide Healthcare Trust is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 34,040 in Worldwide Healthcare Trust on September 7, 2025 and sell it today you would earn a total of 4,010 from holding Worldwide Healthcare Trust or generate 11.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Temple Bar Investment vs. Worldwide Healthcare Trust
Performance |
| Timeline |
| Temple Bar Investment |
| Worldwide Healthcare |
Temple Bar and Worldwide Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Temple Bar and Worldwide Healthcare
The main advantage of trading using opposite Temple Bar and Worldwide Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Temple Bar 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.| Temple Bar vs. Infrastrutture Wireless Italiane | Temple Bar vs. Southwest Airlines Co | Temple Bar vs. Cairo Communication SpA | Temple Bar vs. The Investment |
| Worldwide Healthcare vs. Seche Environnement SA | Worldwide Healthcare vs. Gaztransport et Technigaz | Worldwide Healthcare vs. Catalyst Media Group | Worldwide Healthcare vs. Live Nation Entertainment |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |