Correlation Between Vodafone Group and MyHealthChecked Plc

Can any of the company-specific risk be diversified away by investing in both Vodafone 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 Vodafone 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 Vodafone Group PLC and MyHealthChecked Plc, you can compare the effects of market volatilities on Vodafone 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 Vodafone Group with a short position of MyHealthChecked Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vodafone Group and MyHealthChecked Plc.

Diversification Opportunities for Vodafone Group and MyHealthChecked Plc

-0.58

Correlation Coefficient

Vodafone Group  MyHealthChecked Plc

Excellent diversification

The 3 months correlation between Vodafone and MyHealthChecked is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Vodafone Group PLC and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and Vodafone 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 Vodafone Group PLC 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 Vodafone Group i.e., Vodafone Group and MyHealthChecked Plc go up and down completely randomly.

Pair Corralation between Vodafone Group and MyHealthChecked Plc

Assuming the 90 days trading horizon Vodafone Group PLC is expected to generate 0.92 times more return on investment than MyHealthChecked Plc. However, Vodafone Group PLC is 1.09 times less risky than MyHealthChecked Plc. It trades about 0.09 of its potential returns per unit of risk. MyHealthChecked Plc is currently generating about -0.23 per unit of risk. If you would invest  937.00  in Vodafone Group PLC on April 6, 2025 and sell it today you would earn a total of  141.00  from holding Vodafone Group PLC or generate 15.05% return on investment over 90 days.

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

Vodafone Group PLC  vs.  MyHealthChecked Plc

Vodafone Group PLC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Vodafone Group PLC are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Vodafone Group unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 Vodafone Group and MyHealthChecked Plc

The main advantage of trading using opposite Vodafone Group and MyHealthChecked Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vodafone 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 Vodafone Group PLC 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.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.