Correlation Between MyHealthChecked Plc and Edinburgh Investment

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

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

Diversification Opportunities for MyHealthChecked Plc and Edinburgh Investment

-0.79

Correlation Coefficient

MyHealthChecked Plc  Edinburgh Investment

Pay attention - limited upside

The 3 months correlation between MyHealthChecked and Edinburgh is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding MyHealthChecked Plc and Edinburgh Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Edinburgh Investment 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 Edinburgh Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Edinburgh Investment has no effect on the direction of MyHealthChecked Plc i.e., MyHealthChecked Plc and Edinburgh Investment go up and down completely randomly.

Pair Corralation between MyHealthChecked Plc and Edinburgh Investment

Assuming the 90 days trading horizon MyHealthChecked Plc is expected to under-perform the Edinburgh Investment. In addition to that, MyHealthChecked Plc is 9.53 times more volatile than Edinburgh Investment Trust. It trades about 0.0 of its total potential returns per unit of risk. Edinburgh Investment Trust is currently generating about 0.27 per unit of volatility. If you would invest  73,674  in Edinburgh Investment Trust on April 20, 2025 and sell it today you would earn a total of  6,126  from holding Edinburgh Investment Trust or generate 8.32% return on investment over 90 days.

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

MyHealthChecked Plc  vs.  Edinburgh Investment Trust

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 rather sound technical and fundamental indicators, MyHealthChecked Plc is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

Edinburgh Investment

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Edinburgh Investment Trust are ranked lower than 21 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, Edinburgh Investment may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with MyHealthChecked Plc and Edinburgh Investment

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

The idea behind MyHealthChecked Plc and Edinburgh Investment Trust 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.