Correlation Between Life Insurance and Alignment Healthcare

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

By analyzing existing cross correlation between Life Insurance and Alignment Healthcare LLC, you can compare the effects of market volatilities on Life Insurance and Alignment Healthcare 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 Life Insurance with a short position of Alignment Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Life Insurance and Alignment Healthcare.

Diversification Opportunities for Life Insurance and Alignment Healthcare

-0.5

Correlation Coefficient

Life Insurance  Alignment Healthcare

Very good diversification

The 3 months correlation between Life and Alignment is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Life Insurance and Alignment Healthcare LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alignment Healthcare LLC and Life Insurance 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 Life Insurance are associated (or correlated) with Alignment Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alignment Healthcare LLC has no effect on the direction of Life Insurance i.e., Life Insurance and Alignment Healthcare go up and down completely randomly.

Pair Corralation between Life Insurance and Alignment Healthcare

Assuming the 90 days horizon Life Insurance is expected to under-perform the Alignment Healthcare. But the pink sheet apears to be less risky and, when comparing its historical volatility, Life Insurance is 1.69 times less risky than Alignment Healthcare. The pink sheet trades about -0.08 of its potential returns per unit of risk. The Alignment Healthcare LLC is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,240  in Alignment Healthcare LLC on October 11, 2024 and sell it today you would lose (44.00) from holding Alignment Healthcare LLC or give up 3.55% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	64.24%
Values	Daily Returns

Life Insurance  vs.  Alignment Healthcare LLC

Life Insurance

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Life Insurance has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Life Insurance is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Alignment Healthcare LLC

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Alignment Healthcare LLC are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical indicators, Alignment Healthcare may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with Life Insurance and Alignment Healthcare

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

The idea behind Life Insurance and Alignment Healthcare LLC 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.

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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.