Correlation Between Singular Health and Staude Capital

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

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

Diversification Opportunities for Singular Health and Staude Capital

0.08

Correlation Coefficient

Singular Health  Staude Capital

Significant diversification

The 3 months correlation between Singular and Staude is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Singular Health Group and Staude Capital Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Staude Capital Global and Singular 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 Singular Health Group are associated (or correlated) with Staude Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Staude Capital Global has no effect on the direction of Singular Health i.e., Singular Health and Staude Capital go up and down completely randomly.

Pair Corralation between Singular Health and Staude Capital

Assuming the 90 days trading horizon Singular Health Group is expected to generate 4.31 times more return on investment than Staude Capital. However, Singular Health is 4.31 times more volatile than Staude Capital Global. It trades about 0.01 of its potential returns per unit of risk. Staude Capital Global is currently generating about 0.02 per unit of risk. If you would invest  26.00  in Singular Health Group on December 30, 2024 and sell it today you would lose (2.00) from holding Singular Health Group or give up 7.69% of portfolio value over 90 days.

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

Singular Health Group  vs.  Staude Capital Global

Singular Health Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Singular Health Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, Singular Health is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Staude Capital Global

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Staude Capital Global are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, Staude Capital is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Singular Health and Staude Capital

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

The idea behind Singular Health Group and Staude Capital Global 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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.