Correlation Between Absolute Health and LiveChain
Can any of the company-specific risk be diversified away by investing in both Absolute Health and LiveChain 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 Absolute Health and LiveChain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Absolute Health and and LiveChain, you can compare the effects of market volatilities on Absolute Health and LiveChain 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 Absolute Health with a short position of LiveChain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Absolute Health and LiveChain.
Diversification Opportunities for Absolute Health and LiveChain
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Absolute and LiveChain is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Absolute Health and and LiveChain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LiveChain and Absolute 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 Absolute Health and are associated (or correlated) with LiveChain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LiveChain has no effect on the direction of Absolute Health i.e., Absolute Health and LiveChain go up and down completely randomly.
Pair Corralation between Absolute Health and LiveChain
If you would invest 0.46 in LiveChain on October 26, 2024 and sell it today you would earn a total of 0.10 from holding LiveChain or generate 21.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Absolute Health and vs. LiveChain
Performance |
| Timeline |
| Absolute Health |
| LiveChain |
Absolute Health and LiveChain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Absolute Health and LiveChain
The main advantage of trading using opposite Absolute Health and LiveChain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Absolute Health position performs unexpectedly, LiveChain 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 LiveChain will offset losses from the drop in LiveChain's long position.| Absolute Health vs. Gemz Corp | Absolute Health vs. AVVAA World Health | Absolute Health vs. Newron Sport | Absolute Health vs. Tanke Biosciences |
| LiveChain vs. American Leisure Holdings | LiveChain vs. Absolute Health and | LiveChain vs. Supurva Healthcare Group | LiveChain vs. China Health Management |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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