Correlation Between Vibhavadi Medical and Winner Group

Can any of the company-specific risk be diversified away by investing in both Vibhavadi Medical and Winner Group 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 Vibhavadi Medical and Winner Group into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Vibhavadi Medical Center and Winner Group Enterprise, you can compare the effects of market volatilities on Vibhavadi Medical and Winner Group 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 Vibhavadi Medical with a short position of Winner Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vibhavadi Medical and Winner Group.

Diversification Opportunities for Vibhavadi Medical and Winner Group

-0.34

Correlation Coefficient

Vibhavadi Medical  Winner Group

Very good diversification

The 3 months correlation between Vibhavadi and Winner is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Vibhavadi Medical Center and Winner Group Enterprise in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Winner Group Enterprise and Vibhavadi Medical 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 Vibhavadi Medical Center are associated (or correlated) with Winner Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Winner Group Enterprise has no effect on the direction of Vibhavadi Medical i.e., Vibhavadi Medical and Winner Group go up and down completely randomly.

Pair Corralation between Vibhavadi Medical and Winner Group

Assuming the 90 days trading horizon Vibhavadi Medical Center is expected to generate 1.06 times more return on investment than Winner Group. However, Vibhavadi Medical is 1.06 times more volatile than Winner Group Enterprise. It trades about -0.04 of its potential returns per unit of risk. Winner Group Enterprise is currently generating about -0.21 per unit of risk. If you would invest  222.00  in Vibhavadi Medical Center on March 9, 2024 and sell it today you would lose (6.00) from holding Vibhavadi Medical Center or give up 2.7% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Vibhavadi Medical Center  vs.  Winner Group Enterprise

Vibhavadi Medical Center

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Vibhavadi Medical Center are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat conflicting basic indicators, Vibhavadi Medical sustained solid returns over the last few months and may actually be approaching a breakup point.

Winner Group Enterprise

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Winner Group Enterprise has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Vibhavadi Medical and Winner Group

The main advantage of trading using opposite Vibhavadi Medical and Winner Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vibhavadi Medical position performs unexpectedly, Winner Group 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 Winner Group will offset losses from the drop in Winner Group's long position.

The idea behind Vibhavadi Medical Center and Winner Group Enterprise 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.