Correlation Between Andon Health and Grandblue Environment

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

By analyzing existing cross correlation between Andon Health Co and Grandblue Environment Co, you can compare the effects of market volatilities on Andon Health and Grandblue Environment 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 Andon Health with a short position of Grandblue Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andon Health and Grandblue Environment.

Diversification Opportunities for Andon Health and Grandblue Environment

-0.23

Correlation Coefficient

Andon Health  Grandblue Environment

Very good diversification

The 3 months correlation between Andon and Grandblue is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Andon Health Co and Grandblue Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandblue Environment and Andon Health 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 Andon Health Co are associated (or correlated) with Grandblue Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandblue Environment has no effect on the direction of Andon Health i.e., Andon Health and Grandblue Environment go up and down completely randomly.

Pair Corralation between Andon Health and Grandblue Environment

Assuming the 90 days trading horizon Andon Health is expected to generate 4.36 times less return on investment than Grandblue Environment. In addition to that, Andon Health is 1.58 times more volatile than Grandblue Environment Co. It trades about 0.01 of its total potential returns per unit of risk. Grandblue Environment Co is currently generating about 0.05 per unit of volatility. If you would invest  1,784  in Grandblue Environment Co on October 5, 2024 and sell it today you would earn a total of  544.00  from holding Grandblue Environment Co or generate 30.49% return on investment over 90 days.

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

Andon Health Co  vs.  Grandblue Environment Co

Andon Health

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Andon Health Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Grandblue Environment

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Grandblue Environment Co are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Grandblue Environment may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Andon Health and Grandblue Environment

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

The idea behind Andon Health Co and Grandblue Environment Co 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.