Correlation Between MyHealthChecked Plc and Formycon

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

By analyzing existing cross correlation between MyHealthChecked Plc and Formycon AG, you can compare the effects of market volatilities on MyHealthChecked Plc and Formycon 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 Formycon. Check out your portfolio center. Please also check ongoing floating volatility patterns of MyHealthChecked Plc and Formycon.

Diversification Opportunities for MyHealthChecked Plc and Formycon

-0.69

Correlation Coefficient

MyHealthChecked Plc  Formycon

Excellent diversification

The 3 months correlation between MyHealthChecked and Formycon is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding MyHealthChecked Plc and Formycon AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Formycon AG 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 Formycon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Formycon AG has no effect on the direction of MyHealthChecked Plc i.e., MyHealthChecked Plc and Formycon go up and down completely randomly.

Pair Corralation between MyHealthChecked Plc and Formycon

Assuming the 90 days trading horizon MyHealthChecked Plc is expected to under-perform the Formycon. In addition to that, MyHealthChecked Plc is 1.7 times more volatile than Formycon AG. It trades about -0.05 of its total potential returns per unit of risk. Formycon AG is currently generating about 0.13 per unit of volatility. If you would invest  2,280  in Formycon AG on April 24, 2025 and sell it today you would earn a total of  535.00  from holding Formycon AG or generate 23.46% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	95.38%
Values	Daily Returns

MyHealthChecked Plc  vs.  Formycon AG

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.

Formycon AG

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Formycon AG are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Formycon unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MyHealthChecked Plc and Formycon

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

The idea behind MyHealthChecked Plc and Formycon AG 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.