Correlation Between Akso Health and Varex Imaging
Can any of the company-specific risk be diversified away by investing in both Akso Health and Varex Imaging 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 Varex Imaging 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 Varex Imaging Corp, you can compare the effects of market volatilities on Akso Health and Varex Imaging 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 Varex Imaging. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akso Health and Varex Imaging.
Diversification Opportunities for Akso Health and Varex Imaging
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Akso and Varex is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Akso Health Group and Varex Imaging Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Varex Imaging Corp 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 Varex Imaging. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Varex Imaging Corp has no effect on the direction of Akso Health i.e., Akso Health and Varex Imaging go up and down completely randomly.
Pair Corralation between Akso Health and Varex Imaging
Considering the 90-day investment horizon Akso Health Group is expected to generate 1.8 times more return on investment than Varex Imaging. However, Akso Health is 1.8 times more volatile than Varex Imaging Corp. It trades about 0.06 of its potential returns per unit of risk. Varex Imaging Corp is currently generating about -0.09 per unit of risk. If you would invest 112.00 in Akso Health Group on December 27, 2024 and sell it today you would earn a total of 13.00 from holding Akso Health Group or generate 11.61% 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. Varex Imaging Corp
Performance |
Timeline |
Akso Health Group |
Varex Imaging Corp |
Akso Health and Varex Imaging Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Akso Health and Varex Imaging
The main advantage of trading using opposite Akso Health and Varex Imaging positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akso Health position performs unexpectedly, Varex Imaging 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 Varex Imaging will offset losses from the drop in Varex Imaging's long position.Akso Health vs. Henry Schein | Akso Health vs. Owens Minor | Akso Health vs. Cardinal Health | Akso Health vs. Zynex Inc |
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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