Correlation Between Akso Health and STRATA Skin
Can any of the company-specific risk be diversified away by investing in both Akso Health and STRATA Skin 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 STRATA Skin 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 STRATA Skin Sciences, you can compare the effects of market volatilities on Akso Health and STRATA Skin 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 STRATA Skin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akso Health and STRATA Skin.
Diversification Opportunities for Akso Health and STRATA Skin
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Akso and STRATA is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Akso Health Group and STRATA Skin Sciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STRATA Skin Sciences 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 STRATA Skin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STRATA Skin Sciences has no effect on the direction of Akso Health i.e., Akso Health and STRATA Skin go up and down completely randomly.
Pair Corralation between Akso Health and STRATA Skin
Considering the 90-day investment horizon Akso Health Group is expected to generate 1.86 times more return on investment than STRATA Skin. However, Akso Health is 1.86 times more volatile than STRATA Skin Sciences. It trades about 0.0 of its potential returns per unit of risk. STRATA Skin Sciences is currently generating about -0.02 per unit of risk. If you would invest 115.00 in Akso Health Group on September 1, 2024 and sell it today you would lose (37.00) from holding Akso Health Group or give up 32.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Akso Health Group vs. STRATA Skin Sciences
Performance |
| Timeline |
| Akso Health Group |
| STRATA Skin Sciences |
Akso Health and STRATA Skin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akso Health and STRATA Skin
The main advantage of trading using opposite Akso Health and STRATA Skin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akso Health position performs unexpectedly, STRATA Skin 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 STRATA Skin will offset losses from the drop in STRATA Skin's long position.| Akso Health vs. Profound Medical Corp | Akso Health vs. Si Bone | Akso Health vs. Nevro Corp | Akso Health vs. Paragon 28 |
| STRATA Skin vs. Axogen Inc | STRATA Skin vs. Ainos Inc | STRATA Skin vs. LENSAR Inc | STRATA Skin vs. Nexalin Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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