Correlation Between Risuntek and By Health

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Can any of the company-specific risk be diversified away by investing in both Risuntek and By 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 Risuntek and By Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Risuntek and By health, you can compare the effects of market volatilities on Risuntek and By 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 Risuntek with a short position of By Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Risuntek and By Health.

Diversification Opportunities for Risuntek and By Health

0.65
  Correlation Coefficient

Poor diversification

The 3 months correlation between Risuntek and 300146 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Risuntek and By health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on By health and Risuntek 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 Risuntek are associated (or correlated) with By Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of By health has no effect on the direction of Risuntek i.e., Risuntek and By Health go up and down completely randomly.

Pair Corralation between Risuntek and By Health

Assuming the 90 days trading horizon Risuntek is expected to generate 1.66 times more return on investment than By Health. However, Risuntek is 1.66 times more volatile than By health. It trades about 0.03 of its potential returns per unit of risk. By health is currently generating about -0.04 per unit of risk. If you would invest  1,876  in Risuntek on September 3, 2024 and sell it today you would earn a total of  626.00  from holding Risuntek or generate 33.37% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Risuntek  vs.  By health

 Performance 
       Timeline  
Risuntek 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Risuntek are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Risuntek sustained solid returns over the last few months and may actually be approaching a breakup point.
By health 

Risk-Adjusted Performance

6 of 100

 
Weak
 
Strong
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in By health are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, By Health sustained solid returns over the last few months and may actually be approaching a breakup point.

Risuntek and By Health Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Risuntek and By Health

The main advantage of trading using opposite Risuntek and By Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Risuntek position performs unexpectedly, By 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 By Health will offset losses from the drop in By Health's long position.
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The idea behind Risuntek and By health 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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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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