Correlation Between Mercantile Investment and MyHealthChecked Plc

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

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

Diversification Opportunities for Mercantile Investment and MyHealthChecked Plc

-0.73

Correlation Coefficient

Mercantile Investment  MyHealthChecked Plc

Pay attention - limited upside

The 3 months correlation between Mercantile and MyHealthChecked is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding The Mercantile Investment and MyHealthChecked Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MyHealthChecked Plc and Mercantile Investment 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 The Mercantile Investment are associated (or correlated) with MyHealthChecked Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MyHealthChecked Plc has no effect on the direction of Mercantile Investment i.e., Mercantile Investment and MyHealthChecked Plc go up and down completely randomly.

Pair Corralation between Mercantile Investment and MyHealthChecked Plc

Assuming the 90 days trading horizon The Mercantile Investment is expected to generate 0.17 times more return on investment than MyHealthChecked Plc. However, The Mercantile Investment is 6.01 times less risky than MyHealthChecked Plc. It trades about 0.18 of its potential returns per unit of risk. MyHealthChecked Plc is currently generating about -0.01 per unit of risk. If you would invest  23,208  in The Mercantile Investment on April 25, 2025 and sell it today you would earn a total of  2,192  from holding The Mercantile Investment or generate 9.45% return on investment over 90 days.

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

The Mercantile Investment  vs.  MyHealthChecked Plc

The Mercantile Investment

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in The Mercantile Investment are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain technical and fundamental indicators, Mercantile Investment may actually be approaching a critical reversion point that can send shares even higher in August 2025.

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.

Pair Trading with Mercantile Investment and MyHealthChecked Plc

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

The idea behind The Mercantile Investment and MyHealthChecked 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 Global Correlations module to find global opportunities by holding instruments from different markets.