Correlation Between Owens Minor and Akso Health

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

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

Diversification Opportunities for Owens Minor and Akso Health

0.23

Correlation Coefficient

Owens Minor  Akso Health

Modest diversification

The 3 months correlation between Owens and Akso is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Owens Minor and Akso Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akso Health Group and Owens Minor 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 Owens Minor are associated (or correlated) with Akso Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akso Health Group has no effect on the direction of Owens Minor i.e., Owens Minor and Akso Health go up and down completely randomly.

Pair Corralation between Owens Minor and Akso Health

Considering the 90-day investment horizon Owens Minor is expected to under-perform the Akso Health. In addition to that, Owens Minor is 1.22 times more volatile than Akso Health Group. It trades about -0.05 of its total potential returns per unit of risk. Akso Health Group is currently generating about 0.03 per unit of volatility. If you would invest  123.00  in Akso Health Group on December 26, 2024 and sell it today you would earn a total of  0.00  from holding Akso Health Group or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Owens Minor  vs.  Akso Health Group

Owens Minor

Risk-Adjusted Performance

Very Weak

Over the last 90 days Owens Minor has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's primary indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Akso Health Group

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Akso Health Group are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical indicators, Akso Health may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Pair Trading with Owens Minor and Akso Health

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

The idea behind Owens Minor and Akso Health Group 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.