Correlation Between Alcon AG and Heartbeam
Can any of the company-specific risk be diversified away by investing in both Alcon AG and Heartbeam 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 Alcon AG and Heartbeam into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alcon AG and Heartbeam, you can compare the effects of market volatilities on Alcon AG and Heartbeam 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 Alcon AG with a short position of Heartbeam. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alcon AG and Heartbeam.
Diversification Opportunities for Alcon AG and Heartbeam
Excellent diversification
The 3 months correlation between Alcon and Heartbeam is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Alcon AG and Heartbeam in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heartbeam and Alcon AG 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 Alcon AG are associated (or correlated) with Heartbeam. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heartbeam has no effect on the direction of Alcon AG i.e., Alcon AG and Heartbeam go up and down completely randomly.
Pair Corralation between Alcon AG and Heartbeam
Considering the 90-day investment horizon Alcon AG is expected to under-perform the Heartbeam. But the stock apears to be less risky and, when comparing its historical volatility, Alcon AG is 3.97 times less risky than Heartbeam. The stock trades about -0.3 of its potential returns per unit of risk. The Heartbeam is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 244.00 in Heartbeam on August 27, 2024 and sell it today you would earn a total of 35.00 from holding Heartbeam or generate 14.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alcon AG vs. Heartbeam
Performance |
| Timeline |
| Alcon AG |
| Heartbeam |
Alcon AG and Heartbeam Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alcon AG and Heartbeam
The main advantage of trading using opposite Alcon AG and Heartbeam positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alcon AG position performs unexpectedly, Heartbeam 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 Heartbeam will offset losses from the drop in Heartbeam's long position.| Alcon AG vs. Heartbeam | Alcon AG vs. EUDA Health Holdings | Alcon AG vs. Nutex Health | Alcon AG vs. Healthcare Triangle |
| Heartbeam vs. FOXO Technologies | Heartbeam vs. EUDA Health Holdings | Heartbeam vs. Nutex Health | Heartbeam vs. Healthcare Triangle |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |