Correlation Between Pharmagen and Akso Health

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

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

Diversification Opportunities for Pharmagen and Akso Health

0.0

Correlation Coefficient

Pharmagen  Akso Health

Pay attention - limited upside

The 3 months correlation between Pharmagen and Akso is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pharmagen 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 Pharmagen 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 Pharmagen 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 Pharmagen i.e., Pharmagen and Akso Health go up and down completely randomly.

Pair Corralation between Pharmagen and Akso Health

If you would invest  0.01  in Pharmagen on September 2, 2024 and sell it today you would earn a total of  0.00  from holding Pharmagen or generate 0.0% return on investment over 90 days.

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

Pharmagen  vs.  Akso Health Group

Pharmagen

Risk-Adjusted Performance

0 of 100

Very Weak

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

Akso Health Group

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Akso Health Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, Akso Health is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Pharmagen and Akso Health

The main advantage of trading using opposite Pharmagen and Akso Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pharmagen 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 Pharmagen 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.

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..