Correlation Between Premier Financial and Alpha Healthcare

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

By analyzing existing cross correlation between Premier Financial Corp and Alpha Healthcare Acquisition, you can compare the effects of market volatilities on Premier Financial and Alpha 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 Premier Financial with a short position of Alpha Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premier Financial and Alpha Healthcare.

Diversification Opportunities for Premier Financial and Alpha Healthcare

0.0

Correlation Coefficient

Premier Financial  Alpha Healthcare

Pay attention - limited upside

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

Pair Corralation between Premier Financial and Alpha Healthcare

If you would invest  980.00  in Alpha Healthcare Acquisition on October 24, 2024 and sell it today you would earn a total of  0.00  from holding Alpha Healthcare Acquisition or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.56%
Values	Daily Returns

Premier Financial Corp  vs.  Alpha Healthcare Acquisition

Premier Financial Corp

Risk-Adjusted Performance

3 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Premier Financial Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile technical and fundamental indicators, Premier Financial may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Alpha Healthcare Acq

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Premier Financial and Alpha Healthcare

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

The idea behind Premier Financial Corp and Alpha Healthcare Acquisition 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..