Correlation Between Supurva Healthcare and Aquagold International

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

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

Diversification Opportunities for Supurva Healthcare and Aquagold International

0.64

Correlation Coefficient

Supurva Healthcare  Aquagold International

Poor diversification

The 3 months correlation between Supurva and Aquagold is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Supurva Healthcare Group and Aquagold International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aquagold International and Supurva Healthcare 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 Supurva Healthcare Group are associated (or correlated) with Aquagold International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aquagold International has no effect on the direction of Supurva Healthcare i.e., Supurva Healthcare and Aquagold International go up and down completely randomly.

Pair Corralation between Supurva Healthcare and Aquagold International

Given the investment horizon of 90 days Supurva Healthcare Group is expected to generate 28.8 times more return on investment than Aquagold International. However, Supurva Healthcare is 28.8 times more volatile than Aquagold International. It trades about 0.16 of its potential returns per unit of risk. Aquagold International is currently generating about -0.12 per unit of risk. If you would invest  0.02  in Supurva Healthcare Group on December 29, 2024 and sell it today you would lose (0.01) from holding Supurva Healthcare Group or give up 50.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	96.88%
Values	Daily Returns

Supurva Healthcare Group  vs.  Aquagold International

Supurva Healthcare

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Supurva Healthcare Group are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Supurva Healthcare showed solid returns over the last few months and may actually be approaching a breakup point.

Aquagold International

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aquagold International 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 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.

Pair Trading with Supurva Healthcare and Aquagold International

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

The idea behind Supurva Healthcare Group and Aquagold International 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.