Correlation Between Akso Health and BioLife Solutions
Can any of the company-specific risk be diversified away by investing in both Akso Health and BioLife Solutions 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 BioLife Solutions 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 BioLife Solutions, you can compare the effects of market volatilities on Akso Health and BioLife Solutions 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 BioLife Solutions. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akso Health and BioLife Solutions.
Diversification Opportunities for Akso Health and BioLife Solutions
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Akso and BioLife is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Akso Health Group and BioLife Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BioLife Solutions 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 BioLife Solutions. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BioLife Solutions has no effect on the direction of Akso Health i.e., Akso Health and BioLife Solutions go up and down completely randomly.
Pair Corralation between Akso Health and BioLife Solutions
Considering the 90-day investment horizon Akso Health Group is expected to generate 4.68 times more return on investment than BioLife Solutions. However, Akso Health is 4.68 times more volatile than BioLife Solutions. It trades about 0.13 of its potential returns per unit of risk. BioLife Solutions is currently generating about -0.07 per unit of risk. If you would invest 74.00 in Akso Health Group on December 2, 2024 and sell it today you would earn a total of 61.00 from holding Akso Health Group or generate 82.43% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Akso Health Group vs. BioLife Solutions
Performance |
Timeline |
Akso Health Group |
BioLife Solutions |
Akso Health and BioLife Solutions Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Akso Health and BioLife Solutions
The main advantage of trading using opposite Akso Health and BioLife Solutions positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akso Health position performs unexpectedly, BioLife Solutions 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 BioLife Solutions will offset losses from the drop in BioLife Solutions' long position.Akso Health vs. Henry Schein | Akso Health vs. Owens Minor | Akso Health vs. Cardinal Health | Akso Health vs. Zynex Inc |
BioLife Solutions vs. Akoya Biosciences | BioLife Solutions vs. AtriCure | BioLife Solutions vs. ICU Medical | BioLife Solutions vs. Haemonetics |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |