Correlation Between Active Health and Church Crawford
Can any of the company-specific risk be diversified away by investing in both Active Health and Church Crawford 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 Active Health and Church Crawford into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Active Health Foods and Church Crawford, you can compare the effects of market volatilities on Active Health and Church Crawford 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 Active Health with a short position of Church Crawford. Check out your portfolio center. Please also check ongoing floating volatility patterns of Active Health and Church Crawford.
Diversification Opportunities for Active Health and Church Crawford
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Active and Church is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Active Health Foods and Church Crawford in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Church Crawford and Active 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 Active Health Foods are associated (or correlated) with Church Crawford. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Church Crawford has no effect on the direction of Active Health i.e., Active Health and Church Crawford go up and down completely randomly.
Pair Corralation between Active Health and Church Crawford
Given the investment horizon of 90 days Active Health Foods is expected to generate 3.34 times more return on investment than Church Crawford. However, Active Health is 3.34 times more volatile than Church Crawford. It trades about 0.07 of its potential returns per unit of risk. Church Crawford is currently generating about 0.06 per unit of risk. If you would invest 0.02 in Active Health Foods on September 3, 2024 and sell it today you would lose (0.01) from holding Active Health Foods or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Active Health Foods vs. Church Crawford
Performance |
| Timeline |
| Active Health Foods |
| Church Crawford |
Active Health and Church Crawford Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Active Health and Church Crawford
The main advantage of trading using opposite Active Health and Church Crawford positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Active Health position performs unexpectedly, Church Crawford 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 Church Crawford will offset losses from the drop in Church Crawford's long position.| Active Health vs. Ventana Biotech | Active Health vs. Gold Ent Group | Active Health vs. Profitable Develop | Active Health vs. American Leisure Holdings |
| Church Crawford vs. Oncologix Tech | Church Crawford vs. JPX Global | Church Crawford vs. Profitable Develop | Church Crawford vs. Coastal Capital Acq |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |