Correlation Between Akso Health and Precipio
Can any of the company-specific risk be diversified away by investing in both Akso Health and Precipio 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 Precipio 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 Precipio, you can compare the effects of market volatilities on Akso Health and Precipio 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 Precipio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akso Health and Precipio.
Diversification Opportunities for Akso Health and Precipio
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Akso and Precipio is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Akso Health Group and Precipio in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Precipio 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 Precipio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Precipio has no effect on the direction of Akso Health i.e., Akso Health and Precipio go up and down completely randomly.
Pair Corralation between Akso Health and Precipio
Considering the 90-day investment horizon Akso Health Group is expected to generate 5.91 times more return on investment than Precipio. However, Akso Health is 5.91 times more volatile than Precipio. It trades about 0.04 of its potential returns per unit of risk. Precipio is currently generating about -0.16 per unit of risk. If you would invest 89.00 in Akso Health Group on August 28, 2024 and sell it today you would lose (3.00) from holding Akso Health Group or give up 3.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akso Health Group vs. Precipio
Performance |
| Timeline |
| Akso Health Group |
| Precipio |
Akso Health and Precipio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akso Health and Precipio
The main advantage of trading using opposite Akso Health and Precipio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akso Health position performs unexpectedly, Precipio 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 Precipio will offset losses from the drop in Precipio's long position.| Akso Health vs. Henry Schein | Akso Health vs. Owens Minor | Akso Health vs. Cardinal Health | Akso Health vs. Zynex Inc |
| Precipio vs. Biodesix | Precipio vs. Sera Prognostics | Precipio vs. Applied DNA Sciences | Precipio vs. Caredx 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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