Correlation Between MyHealthChecked Plc and Optima Health

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

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

Diversification Opportunities for MyHealthChecked Plc and Optima Health

-0.65

Correlation Coefficient

MyHealthChecked Plc  Optima Health

Excellent diversification

The 3 months correlation between MyHealthChecked and Optima is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding MyHealthChecked Plc and Optima Health plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Optima Health plc 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 Optima Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Optima Health plc has no effect on the direction of MyHealthChecked Plc i.e., MyHealthChecked Plc and Optima Health go up and down completely randomly.

Pair Corralation between MyHealthChecked Plc and Optima Health

Assuming the 90 days trading horizon MyHealthChecked Plc is expected to under-perform the Optima Health. In addition to that, MyHealthChecked Plc is 2.55 times more volatile than Optima Health plc. It trades about 0.0 of its total potential returns per unit of risk. Optima Health plc is currently generating about 0.09 per unit of volatility. If you would invest  17,800  in Optima Health plc on April 22, 2025 and sell it today you would earn a total of  1,650  from holding Optima Health plc or generate 9.27% 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.  Optima Health plc

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.

Optima Health plc

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Optima Health plc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Optima Health may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with MyHealthChecked Plc and Optima Health

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

The idea behind MyHealthChecked Plc and Optima Health plc 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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.