Correlation Between Advanced Health and DubberLimited

Can any of the company-specific risk be diversified away by investing in both Advanced Health and DubberLimited 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 DubberLimited 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 Dubber Limited, you can compare the effects of market volatilities on Advanced Health and DubberLimited 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 DubberLimited. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Health and DubberLimited.

Diversification Opportunities for Advanced Health and DubberLimited

-0.1

Correlation Coefficient

Advanced Health  DubberLimited

Good diversification

The 3 months correlation between Advanced and DubberLimited is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Health Intelligence and Dubber Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dubber Limited 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 DubberLimited. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dubber Limited has no effect on the direction of Advanced Health i.e., Advanced Health and DubberLimited go up and down completely randomly.

Pair Corralation between Advanced Health and DubberLimited

If you would invest  5.09  in Dubber Limited on September 1, 2024 and sell it today you would lose (2.09) from holding Dubber Limited or give up 41.06% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

Advanced Health Intelligence  vs.  Dubber Limited

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 latest weak performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Dubber Limited

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Dubber Limited are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, DubberLimited reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Advanced Health and DubberLimited

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

The idea behind Advanced Health Intelligence and Dubber Limited 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.