Correlation Between Akso Health and Auna SA

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

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

Diversification Opportunities for Akso Health and Auna SA

0.21

Correlation Coefficient

Akso Health  Auna SA

Modest diversification

The 3 months correlation between Akso and Auna is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Akso Health Group and Auna SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auna SA and Akso 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 Akso Health Group are associated (or correlated) with Auna SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auna SA has no effect on the direction of Akso Health i.e., Akso Health and Auna SA go up and down completely randomly.

Pair Corralation between Akso Health and Auna SA

Considering the 90-day investment horizon Akso Health Group is expected to under-perform the Auna SA. In addition to that, Akso Health is 1.91 times more volatile than Auna SA. It trades about 0.0 of its total potential returns per unit of risk. Auna SA is currently generating about 0.05 per unit of volatility. If you would invest  669.00  in Auna SA on December 18, 2024 and sell it today you would earn a total of  45.00  from holding Auna SA or generate 6.73% return on investment over 90 days.

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

Akso Health Group  vs.  Auna SA

Akso Health Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akso Health Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Akso Health is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Auna SA

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Auna SA are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Auna SA may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Akso Health and Auna SA

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

The idea behind Akso Health Group and Auna SA 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.

Check out your portfolio center.

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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.