Correlation Between Advanced Health and Riskified

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

Diversification Opportunities for Advanced Health and Riskified

-0.24

Correlation Coefficient

Advanced Health  Riskified

Very good diversification

The 3 months correlation between Advanced and Riskified is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Health Intelligence and Riskified in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Riskified 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 Riskified. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Riskified has no effect on the direction of Advanced Health i.e., Advanced Health and Riskified go up and down completely randomly.

Pair Corralation between Advanced Health and Riskified

Assuming the 90 days horizon Advanced Health Intelligence is expected to under-perform the Riskified. In addition to that, Advanced Health is 1.84 times more volatile than Riskified. It trades about -0.18 of its total potential returns per unit of risk. Riskified is currently generating about -0.01 per unit of volatility. If you would invest  475.00  in Riskified on September 23, 2024 and sell it today you would lose (11.00) from holding Riskified or give up 2.32% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Advanced Health Intelligence  vs.  Riskified

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 weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Riskified

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Riskified has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward-looking signals, Riskified is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Advanced Health and Riskified

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

The idea behind Advanced Health Intelligence and Riskified 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.