Correlation Between Avalon GloboCare and New England
Can any of the company-specific risk be diversified away by investing in both Avalon GloboCare and New England 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 Avalon GloboCare and New England into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avalon GloboCare Corp and New England Realty, you can compare the effects of market volatilities on Avalon GloboCare and New England 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 Avalon GloboCare with a short position of New England. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avalon GloboCare and New England.
Diversification Opportunities for Avalon GloboCare and New England
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Avalon and New is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Avalon GloboCare Corp and New England Realty in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on New England Realty and Avalon GloboCare 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 Avalon GloboCare Corp are associated (or correlated) with New England. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of New England Realty has no effect on the direction of Avalon GloboCare i.e., Avalon GloboCare and New England go up and down completely randomly.
Pair Corralation between Avalon GloboCare and New England
Given the investment horizon of 90 days Avalon GloboCare is expected to generate 1.14 times less return on investment than New England. In addition to that, Avalon GloboCare is 7.1 times more volatile than New England Realty. It trades about 0.03 of its total potential returns per unit of risk. New England Realty is currently generating about 0.25 per unit of volatility. If you would invest 7,900 in New England Realty on September 1, 2024 and sell it today you would earn a total of 347.00 from holding New England Realty or generate 4.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 38.1% |
| Values | Daily Returns |
Avalon GloboCare Corp vs. New England Realty
Performance |
| Timeline |
| Avalon GloboCare Corp |
| New England Realty |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Avalon GloboCare and New England Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avalon GloboCare and New England
The main advantage of trading using opposite Avalon GloboCare and New England positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avalon GloboCare position performs unexpectedly, New England 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 New England will offset losses from the drop in New England's long position.| Avalon GloboCare vs. Ascendas India Trust | Avalon GloboCare vs. Asia Pptys | Avalon GloboCare vs. Adler Group SA | Avalon GloboCare vs. Aztec Land Comb |
| New England vs. The Intergroup | New England vs. Transcontinental Realty Investors | New England vs. American Realty Investors | New England vs. Gyrodyne Company of |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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