Correlation Between MyHealthChecked Plc and Alibaba Group

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

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

Diversification Opportunities for MyHealthChecked Plc and Alibaba Group

0.5

Correlation Coefficient

MyHealthChecked Plc  Alibaba Group

Very weak diversification

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

Pair Corralation between MyHealthChecked Plc and Alibaba Group

Assuming the 90 days trading horizon MyHealthChecked Plc is expected to generate 2.61 times more return on investment than Alibaba Group. However, MyHealthChecked Plc is 2.61 times more volatile than Alibaba Group Holding. It trades about 0.06 of its potential returns per unit of risk. Alibaba Group Holding is currently generating about 0.12 per unit of risk. If you would invest  1,125  in MyHealthChecked Plc on April 24, 2025 and sell it today you would earn a total of  50.00  from holding MyHealthChecked Plc or generate 4.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	95.65%
Values	Daily Returns

MyHealthChecked Plc  vs.  Alibaba Group Holding

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.

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.

Pair Trading with MyHealthChecked Plc and Alibaba Group

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

The idea behind MyHealthChecked Plc and Alibaba Group Holding 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.