Correlation Between Austco Healthcare and Retail Food

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

Diversification Opportunities for Austco Healthcare and Retail Food

AustcoRetailDiversified AwayAustcoRetailDiversified Away100%
-0.95
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Austco and Retail is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding Austco Healthcare and Retail Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Retail Food Group and Austco 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 Austco Healthcare are associated (or correlated) with Retail Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Retail Food Group has no effect on the direction of Austco Healthcare i.e., Austco Healthcare and Retail Food go up and down completely randomly.

Pair Corralation between Austco Healthcare and Retail Food

Assuming the 90 days trading horizon Austco Healthcare is expected to generate 6.92 times less return on investment than Retail Food. But when comparing it to its historical volatility, Austco Healthcare is 1.18 times less risky than Retail Food. It trades about 0.01 of its potential returns per unit of risk. Retail Food Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  217.00  in Retail Food Group on November 25, 2024 and sell it today you would earn a total of  11.00  from holding Retail Food Group or generate 5.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Austco Healthcare  vs.  Retail Food Group

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -30-20-100102030
JavaScript chart by amCharts 3.21.15AHC RFG
       Timeline  
Austco Healthcare 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Austco Healthcare are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain fundamental indicators, Austco Healthcare unveiled solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.240.260.280.30.320.34
Retail Food Group 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Retail Food Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in March 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1.822.22.42.62.83

Austco Healthcare and Retail Food Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-8.3-6.26-4.22-2.18-0.142.054.256.458.6510.86 0.0200.0250.0300.0350.0400.0450.0500.055
JavaScript chart by amCharts 3.21.15AHC RFG
       Returns  

Pair Trading with Austco Healthcare and Retail Food

The main advantage of trading using opposite Austco Healthcare and Retail Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Austco Healthcare position performs unexpectedly, Retail 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 Retail Food will offset losses from the drop in Retail Food's long position.
The idea behind Austco Healthcare and Retail Food Group 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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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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.

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