Correlation Between AUTHUM INVESTMENT and Global Health

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Can any of the company-specific risk be diversified away by investing in both AUTHUM INVESTMENT and Global Health 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 AUTHUM INVESTMENT and Global Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AUTHUM INVESTMENT INFRASTRUCTU and Global Health Limited, you can compare the effects of market volatilities on AUTHUM INVESTMENT and Global Health 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 AUTHUM INVESTMENT with a short position of Global Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of AUTHUM INVESTMENT and Global Health.

Diversification Opportunities for AUTHUM INVESTMENT and Global Health

AUTHUMGlobalDiversified AwayAUTHUMGlobalDiversified Away100%
-0.23
  Correlation Coefficient

Very good diversification

The 3 months correlation between AUTHUM and Global is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding AUTHUM INVESTMENT INFRASTRUCTU and Global Health Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Health Limited and AUTHUM INVESTMENT 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 AUTHUM INVESTMENT INFRASTRUCTU are associated (or correlated) with Global Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Health Limited has no effect on the direction of AUTHUM INVESTMENT i.e., AUTHUM INVESTMENT and Global Health go up and down completely randomly.

Pair Corralation between AUTHUM INVESTMENT and Global Health

Assuming the 90 days trading horizon AUTHUM INVESTMENT INFRASTRUCTU is expected to under-perform the Global Health. But the stock apears to be less risky and, when comparing its historical volatility, AUTHUM INVESTMENT INFRASTRUCTU is 1.1 times less risky than Global Health. The stock trades about -0.25 of its potential returns per unit of risk. The Global Health Limited is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest  104,400  in Global Health Limited on November 23, 2024 and sell it today you would earn a total of  16,240  from holding Global Health Limited or generate 15.56% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

AUTHUM INVESTMENT INFRASTRUCTU  vs.  Global Health Limited

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -505101520
JavaScript chart by amCharts 3.21.15AIIL MEDANTA
       Timeline  
AUTHUM INVESTMENT 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days AUTHUM INVESTMENT INFRASTRUCTU has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, AUTHUM INVESTMENT is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1,5001,6001,7001,8001,900
Global Health Limited 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Global Health Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Global Health may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1,0001,0501,1001,1501,200

AUTHUM INVESTMENT and Global Health Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-5.0-3.74-2.49-1.230.01.22.443.694.936.17 0.040.050.060.07
JavaScript chart by amCharts 3.21.15AIIL MEDANTA
       Returns  

Pair Trading with AUTHUM INVESTMENT and Global Health

The main advantage of trading using opposite AUTHUM INVESTMENT and Global Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AUTHUM INVESTMENT position performs unexpectedly, Global Health 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 Global Health will offset losses from the drop in Global Health's long position.
The idea behind AUTHUM INVESTMENT INFRASTRUCTU and Global Health Limited pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

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