Correlation Between 159681 and Andon Health
Specify exactly 2 symbols:
By analyzing existing cross correlation between 159681 and Andon Health Co, you can compare the effects of market volatilities on 159681 and Andon 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 159681 with a short position of Andon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and Andon Health.
Diversification Opportunities for 159681 and Andon Health
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 159681 and Andon is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and Andon Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andon Health and 159681 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 159681 are associated (or correlated) with Andon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andon Health has no effect on the direction of 159681 i.e., 159681 and Andon Health go up and down completely randomly.
Pair Corralation between 159681 and Andon Health
Assuming the 90 days trading horizon 159681 is expected to generate 1.08 times more return on investment than Andon Health. However, 159681 is 1.08 times more volatile than Andon Health Co. It trades about 0.01 of its potential returns per unit of risk. Andon Health Co is currently generating about 0.0 per unit of risk. If you would invest 102.00 in 159681 on September 26, 2024 and sell it today you would lose (5.00) from holding 159681 or give up 4.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. Andon Health Co
Performance |
| Timeline |
| 159681 |
| Andon Health |
159681 and Andon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and Andon Health
The main advantage of trading using opposite 159681 and Andon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, Andon 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 Andon Health will offset losses from the drop in Andon Health's long position.The idea behind 159681 and Andon Health Co 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.| Andon Health vs. New China Life | Andon Health vs. Ming Yang Smart | Andon Health vs. 159681 | Andon Health vs. 159005 |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |