Correlation Between Alibaba Group and MyHealthChecked Plc

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

By analyzing existing cross correlation between Alibaba Group Holding and MyHealthChecked Plc, you can compare the effects of market volatilities on Alibaba Group and MyHealthChecked Plc 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 Alibaba Group with a short position of MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alibaba Group and MyHealthChecked Plc.

Diversification Opportunities for Alibaba Group and MyHealthChecked Plc

0.5

Correlation Coefficient

Alibaba Group  MyHealthChecked Plc

Very weak diversification

The 3 months correlation between Alibaba and MyHealthChecked is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Alibaba Group Holding and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and Alibaba Group 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 Alibaba Group Holding are associated (or correlated) with MyHealthChecked Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyHealthChecked Plc has no effect on the direction of Alibaba Group i.e., Alibaba Group and MyHealthChecked Plc go up and down completely randomly.

Pair Corralation between Alibaba Group and MyHealthChecked Plc

Assuming the 90 days trading horizon Alibaba Group Holding is expected to generate 0.53 times more return on investment than MyHealthChecked Plc. However, Alibaba Group Holding is 1.9 times less risky than MyHealthChecked Plc. It trades about 0.02 of its potential returns per unit of risk. MyHealthChecked Plc is currently generating about -0.05 per unit of risk. If you would invest  11,850  in Alibaba Group Holding on April 24, 2025 and sell it today you would earn a total of  186.00  from holding Alibaba Group Holding or generate 1.57% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.41%
Values	Daily Returns

Alibaba Group Holding  vs.  MyHealthChecked Plc

Alibaba Group Holding

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alibaba Group Holding are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Alibaba Group is not utilizing all of its potentials. The latest stock price uproar, may contribute to short-horizon losses for the private investors.

MyHealthChecked Plc

Risk-Adjusted Performance

Very Weak

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 August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Pair Trading with Alibaba Group and MyHealthChecked Plc

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

The idea behind Alibaba Group Holding and MyHealthChecked Plc 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.