Correlation Between MyHealthChecked Plc and Golden Metal

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

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

Diversification Opportunities for MyHealthChecked Plc and Golden Metal

-0.71

Correlation Coefficient

MyHealthChecked Plc  Golden Metal

Pay attention - limited upside

The 3 months correlation between MyHealthChecked and Golden is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding MyHealthChecked Plc and Golden Metal Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Golden Metal Resources 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 Golden Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Golden Metal Resources has no effect on the direction of MyHealthChecked Plc i.e., MyHealthChecked Plc and Golden Metal go up and down completely randomly.

Pair Corralation between MyHealthChecked Plc and Golden Metal

Assuming the 90 days trading horizon MyHealthChecked Plc is expected to under-perform the Golden Metal. In addition to that, MyHealthChecked Plc is 1.26 times more volatile than Golden Metal Resources. It trades about -0.01 of its total potential returns per unit of risk. Golden Metal Resources is currently generating about 0.25 per unit of volatility. If you would invest  3,700  in Golden Metal Resources on April 25, 2025 and sell it today you would earn a total of  2,800  from holding Golden Metal Resources or generate 75.68% 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.  Golden Metal Resources

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.

Golden Metal Resources

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Golden Metal Resources are ranked lower than 19 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Golden Metal unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MyHealthChecked Plc and Golden Metal

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

The idea behind MyHealthChecked Plc and Golden Metal Resources 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.