Correlation Between Hospital Mater and Baumer SA

Can any of the company-specific risk be diversified away by investing in both Hospital Mater and Baumer SA 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 Hospital Mater and Baumer SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hospital Mater Dei and Baumer SA, you can compare the effects of market volatilities on Hospital Mater and Baumer SA 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 Hospital Mater with a short position of Baumer SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hospital Mater and Baumer SA.

Diversification Opportunities for Hospital Mater and Baumer SA

-0.11

Correlation Coefficient

Hospital Mater  Baumer SA

Good diversification

The 3 months correlation between Hospital and Baumer is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Hospital Mater Dei and Baumer SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baumer SA and Hospital Mater 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 Hospital Mater Dei are associated (or correlated) with Baumer SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baumer SA has no effect on the direction of Hospital Mater i.e., Hospital Mater and Baumer SA go up and down completely randomly.

Pair Corralation between Hospital Mater and Baumer SA

Assuming the 90 days trading horizon Hospital Mater Dei is expected to under-perform the Baumer SA. But the stock apears to be less risky and, when comparing its historical volatility, Hospital Mater Dei is 1.34 times less risky than Baumer SA. The stock trades about 0.0 of its potential returns per unit of risk. The Baumer SA is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,645  in Baumer SA on April 24, 2025 and sell it today you would earn a total of  455.00  from holding Baumer SA or generate 27.66% return on investment over 90 days.

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

Hospital Mater Dei  vs.  Baumer SA

Hospital Mater Dei

Risk-Adjusted Performance

Very Weak

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

Baumer SA

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Baumer SA are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Baumer SA unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hospital Mater and Baumer SA

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

The idea behind Hospital Mater Dei and Baumer SA 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.