Correlation Between Actinogen Medical and Capitol Health
Can any of the company-specific risk be diversified away by investing in both Actinogen Medical and Capitol 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 Actinogen Medical and Capitol Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Actinogen Medical and Capitol Health, you can compare the effects of market volatilities on Actinogen Medical and Capitol 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 Actinogen Medical with a short position of Capitol Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Actinogen Medical and Capitol Health.
Diversification Opportunities for Actinogen Medical and Capitol Health
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Actinogen and Capitol is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Actinogen Medical and Capitol Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capitol Health and Actinogen Medical 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 Actinogen Medical are associated (or correlated) with Capitol Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capitol Health has no effect on the direction of Actinogen Medical i.e., Actinogen Medical and Capitol Health go up and down completely randomly.
Pair Corralation between Actinogen Medical and Capitol Health
Assuming the 90 days trading horizon Actinogen Medical is expected to under-perform the Capitol Health. In addition to that, Actinogen Medical is 1.85 times more volatile than Capitol Health. It trades about -0.01 of its total potential returns per unit of risk. Capitol Health is currently generating about 0.01 per unit of volatility. If you would invest 38.00 in Capitol Health on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Capitol Health or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Actinogen Medical vs. Capitol Health
Performance |
| Timeline |
| Actinogen Medical |
| Capitol Health |
Actinogen Medical and Capitol Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Actinogen Medical and Capitol Health
The main advantage of trading using opposite Actinogen Medical and Capitol Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Actinogen Medical position performs unexpectedly, Capitol 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 Capitol Health will offset losses from the drop in Capitol Health's long position.| Actinogen Medical vs. Aneka Tambang Tbk | Actinogen Medical vs. Rio Tinto | Actinogen Medical vs. BHP Group Limited | Actinogen Medical vs. Block Inc |
| Capitol Health vs. Iron Road | Capitol Health vs. Champion Iron | Capitol Health vs. Bisalloy Steel Group | Capitol Health vs. Sky Metals |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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