Correlation Between Andlauer Healthcare and Stingray
Can any of the company-specific risk be diversified away by investing in both Andlauer Healthcare and Stingray 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 Andlauer Healthcare and Stingray into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Andlauer Healthcare Gr and Stingray Group, you can compare the effects of market volatilities on Andlauer Healthcare and Stingray 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 Andlauer Healthcare with a short position of Stingray. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andlauer Healthcare and Stingray.
Diversification Opportunities for Andlauer Healthcare and Stingray
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Andlauer and Stingray is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Andlauer Healthcare Gr and Stingray Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Stingray Group and Andlauer Healthcare 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 Andlauer Healthcare Gr are associated (or correlated) with Stingray. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Stingray Group has no effect on the direction of Andlauer Healthcare i.e., Andlauer Healthcare and Stingray go up and down completely randomly.
Pair Corralation between Andlauer Healthcare and Stingray
Assuming the 90 days trading horizon Andlauer Healthcare Gr is expected to generate 0.79 times more return on investment than Stingray. However, Andlauer Healthcare Gr is 1.27 times less risky than Stingray. It trades about 0.13 of its potential returns per unit of risk. Stingray Group is currently generating about 0.05 per unit of risk. If you would invest 3,809 in Andlauer Healthcare Gr on September 15, 2024 and sell it today you would earn a total of 451.00 from holding Andlauer Healthcare Gr or generate 11.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Andlauer Healthcare Gr vs. Stingray Group
Performance |
Timeline |
Andlauer Healthcare |
Stingray Group |
Andlauer Healthcare and Stingray Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Andlauer Healthcare and Stingray
The main advantage of trading using opposite Andlauer Healthcare and Stingray positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andlauer Healthcare position performs unexpectedly, Stingray 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 Stingray will offset losses from the drop in Stingray's long position.Andlauer Healthcare vs. Dream Unlimited Corp | Andlauer Healthcare vs. TECSYS Inc | Andlauer Healthcare vs. Real Matters |
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.
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