Correlation Between Active Health and Kasten
Can any of the company-specific risk be diversified away by investing in both Active Health and Kasten 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 Kasten 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 Kasten Inc, you can compare the effects of market volatilities on Active Health and Kasten 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 Kasten. Check out your portfolio center. Please also check ongoing floating volatility patterns of Active Health and Kasten.
Diversification Opportunities for Active Health and Kasten
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Active and Kasten is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Active Health Foods and Kasten Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kasten Inc 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 Kasten. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kasten Inc has no effect on the direction of Active Health i.e., Active Health and Kasten go up and down completely randomly.
Pair Corralation between Active Health and Kasten
Given the investment horizon of 90 days Active Health Foods is expected to generate 3.25 times more return on investment than Kasten. However, Active Health is 3.25 times more volatile than Kasten Inc. It trades about 0.07 of its potential returns per unit of risk. Kasten Inc is currently generating about 0.05 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 | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Active Health Foods vs. Kasten Inc
Performance |
| Timeline |
| Active Health Foods |
| Kasten Inc |
Active Health and Kasten Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Active Health and Kasten
The main advantage of trading using opposite Active Health and Kasten positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Active Health position performs unexpectedly, Kasten 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 Kasten will offset losses from the drop in Kasten'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 |
| Kasten vs. Manaris Corp | Kasten vs. Green Planet Bio | Kasten vs. Continental Beverage Brands | Kasten vs. Opus Magnum Ameris |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |