Correlation Between Abingdon Health and Roebuck Food
Can any of the company-specific risk be diversified away by investing in both Abingdon Health and Roebuck Food 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 Abingdon Health and Roebuck Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abingdon Health Plc and Roebuck Food Group, you can compare the effects of market volatilities on Abingdon Health and Roebuck Food 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 Abingdon Health with a short position of Roebuck Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abingdon Health and Roebuck Food.
Diversification Opportunities for Abingdon Health and Roebuck Food
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Abingdon and Roebuck is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Abingdon Health Plc and Roebuck Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Roebuck Food Group and Abingdon 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 Abingdon Health Plc are associated (or correlated) with Roebuck Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Roebuck Food Group has no effect on the direction of Abingdon Health i.e., Abingdon Health and Roebuck Food go up and down completely randomly.
Pair Corralation between Abingdon Health and Roebuck Food
If you would invest 1,650 in Roebuck Food Group on December 31, 2024 and sell it today you would earn a total of 0.00 from holding Roebuck Food Group or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abingdon Health Plc vs. Roebuck Food Group
Performance |
| Timeline |
| Abingdon Health Plc |
| Roebuck Food Group |
Abingdon Health and Roebuck Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abingdon Health and Roebuck Food
The main advantage of trading using opposite Abingdon Health and Roebuck Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abingdon Health position performs unexpectedly, Roebuck Food 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 Roebuck Food will offset losses from the drop in Roebuck Food's long position.| Abingdon Health vs. Wyndham Hotels Resorts | Abingdon Health vs. Applied Materials | Abingdon Health vs. BE Semiconductor Industries | Abingdon Health vs. Elmos Semiconductor SE |
| Roebuck Food vs. SupplyMe Capital PLC | Roebuck Food vs. Lloyds Banking Group | Roebuck Food vs. Premier African Minerals | Roebuck Food vs. Tower Resources plc |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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