Correlation Between Advanced Health and Ackroo

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

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

Diversification Opportunities for Advanced Health and Ackroo

0.56

Correlation Coefficient

Advanced Health  Ackroo

Very weak diversification

The 3 months correlation between Advanced and Ackroo is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Health Intelligence and Ackroo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ackroo Inc and Advanced 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 Advanced Health Intelligence are associated (or correlated) with Ackroo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ackroo Inc has no effect on the direction of Advanced Health i.e., Advanced Health and Ackroo go up and down completely randomly.

Pair Corralation between Advanced Health and Ackroo

If you would invest  8.40  in Ackroo Inc on October 23, 2024 and sell it today you would earn a total of  1.45  from holding Ackroo Inc or generate 17.26% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	1.61%
Values	Daily Returns

Advanced Health Intelligence  vs.  Ackroo Inc

Advanced Health Inte

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Advanced Health Intelligence has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong technical indicators, Advanced Health is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Ackroo Inc

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Ackroo Inc are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Ackroo reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advanced Health and Ackroo

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

The idea behind Advanced Health Intelligence and Ackroo Inc 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.