Correlation Between Aperture Health and Zhibao Technology

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

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

Diversification Opportunities for Aperture Health and Zhibao Technology

0.0

Correlation Coefficient

Aperture Health  Zhibao Technology

Pay attention - limited upside

The 3 months correlation between Aperture and Zhibao is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Aperture Health and Zhibao Technology Class in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhibao Technology Class and Aperture 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 Aperture Health are associated (or correlated) with Zhibao Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhibao Technology Class has no effect on the direction of Aperture Health i.e., Aperture Health and Zhibao Technology go up and down completely randomly.

Pair Corralation between Aperture Health and Zhibao Technology

If you would invest  5.90  in Aperture Health on December 21, 2024 and sell it today you would earn a total of  0.00  from holding Aperture Health or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Aperture Health  vs.  Zhibao Technology Class

Aperture Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aperture Health has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong basic indicators, Aperture Health is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

Zhibao Technology Class

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zhibao Technology Class has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Aperture Health and Zhibao Technology

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

The idea behind Aperture Health and Zhibao Technology Class 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.