Correlation Between CHC Healthcare and Argosy Research
Can any of the company-specific risk be diversified away by investing in both CHC Healthcare and Argosy Research 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 CHC Healthcare and Argosy Research into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHC Healthcare Group and Argosy Research, you can compare the effects of market volatilities on CHC Healthcare and Argosy Research 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 CHC Healthcare with a short position of Argosy Research. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHC Healthcare and Argosy Research.
Diversification Opportunities for CHC Healthcare and Argosy Research
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between CHC and Argosy is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding CHC Healthcare Group and Argosy Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Argosy Research and CHC 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 CHC Healthcare Group are associated (or correlated) with Argosy Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Argosy Research has no effect on the direction of CHC Healthcare i.e., CHC Healthcare and Argosy Research go up and down completely randomly.
Pair Corralation between CHC Healthcare and Argosy Research
Assuming the 90 days trading horizon CHC Healthcare Group is expected to under-perform the Argosy Research. But the stock apears to be less risky and, when comparing its historical volatility, CHC Healthcare Group is 1.03 times less risky than Argosy Research. The stock trades about -0.15 of its potential returns per unit of risk. The Argosy Research is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 15,300 in Argosy Research on September 12, 2024 and sell it today you would earn a total of 450.00 from holding Argosy Research or generate 2.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
CHC Healthcare Group vs. Argosy Research
Performance |
| Timeline |
| CHC Healthcare Group |
| Argosy Research |
CHC Healthcare and Argosy Research Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHC Healthcare and Argosy Research
The main advantage of trading using opposite CHC Healthcare and Argosy Research positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHC Healthcare position performs unexpectedly, Argosy Research 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 Argosy Research will offset losses from the drop in Argosy Research's long position.| CHC Healthcare vs. Phytohealth Corp | CHC Healthcare vs. GenMont Biotech | CHC Healthcare vs. Hung Sheng Construction | CHC Healthcare vs. De Licacy Industrial |
| Argosy Research vs. U Tech Media Corp | Argosy Research vs. Energenesis Biomedical Co | Argosy Research vs. Pili International Multimedia | Argosy Research vs. Easywell Biomedicals |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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