Correlation Between Akso Health and Icad
Can any of the company-specific risk be diversified away by investing in both Akso Health and Icad 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 Akso Health and Icad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akso Health Group and icad inc, you can compare the effects of market volatilities on Akso Health and Icad 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 Akso Health with a short position of Icad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akso Health and Icad.
Diversification Opportunities for Akso Health and Icad
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Akso and Icad is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Akso Health Group and icad inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on icad inc and Akso 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 Akso Health Group are associated (or correlated) with Icad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of icad inc has no effect on the direction of Akso Health i.e., Akso Health and Icad go up and down completely randomly.
Pair Corralation between Akso Health and Icad
Considering the 90-day investment horizon Akso Health Group is expected to generate 1.63 times more return on investment than Icad. However, Akso Health is 1.63 times more volatile than icad inc. It trades about 0.06 of its potential returns per unit of risk. icad inc is currently generating about -0.04 per unit of risk. If you would invest 85.00 in Akso Health Group on August 24, 2024 and sell it today you would earn a total of 3.00 from holding Akso Health Group or generate 3.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akso Health Group vs. icad inc
Performance |
| Timeline |
| Akso Health Group |
| icad inc |
Akso Health and Icad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akso Health and Icad
The main advantage of trading using opposite Akso Health and Icad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akso Health position performs unexpectedly, Icad 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 Icad will offset losses from the drop in Icad's long position.| Akso Health vs. Henry Schein | Akso Health vs. Owens Minor | Akso Health vs. Cardinal Health | Akso Health vs. Zynex Inc |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |