Correlation Between Akili and Cue Health
Can any of the company-specific risk be diversified away by investing in both Akili and Cue 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 Akili and Cue Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akili Inc and Cue Health, you can compare the effects of market volatilities on Akili and Cue 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 Akili with a short position of Cue Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akili and Cue Health.
Diversification Opportunities for Akili and Cue Health
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Akili and Cue is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Akili Inc and Cue Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cue Health and Akili 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 Akili Inc are associated (or correlated) with Cue Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cue Health has no effect on the direction of Akili i.e., Akili and Cue Health go up and down completely randomly.
Pair Corralation between Akili and Cue Health
Given the investment horizon of 90 days Akili Inc is expected to generate 0.75 times more return on investment than Cue Health. However, Akili Inc is 1.33 times less risky than Cue Health. It trades about 0.04 of its potential returns per unit of risk. Cue Health is currently generating about -0.13 per unit of risk. If you would invest 47.00 in Akili Inc on August 24, 2024 and sell it today you would lose (4.00) from holding Akili Inc or give up 8.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 93.33% |
| Values | Daily Returns |
Akili Inc vs. Cue Health
Performance |
| Timeline |
| Akili Inc |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cue Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Akili and Cue Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Akili and Cue Health
The main advantage of trading using opposite Akili and Cue Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akili position performs unexpectedly, Cue 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 Cue Health will offset losses from the drop in Cue Health's long position.| Akili vs. EUDA Health Holdings | Akili vs. FOXO Technologies | Akili vs. Aclarion | Akili vs. National Research Corp |
| Cue Health vs. CareMax | Cue Health vs. Premier | Cue Health vs. HealthStream | Cue Health vs. EUDA Health Holdings |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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