Correlation Between Alignment Healthcare and Samfine Creation
Can any of the company-specific risk be diversified away by investing in both Alignment Healthcare and Samfine Creation 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 Alignment Healthcare and Samfine Creation into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alignment Healthcare LLC and Samfine Creation Holdings, you can compare the effects of market volatilities on Alignment Healthcare and Samfine Creation 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 Alignment Healthcare with a short position of Samfine Creation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alignment Healthcare and Samfine Creation.
Diversification Opportunities for Alignment Healthcare and Samfine Creation
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Alignment and Samfine is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Alignment Healthcare LLC and Samfine Creation Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Samfine Creation Holdings and Alignment Healthcare 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 Alignment Healthcare LLC are associated (or correlated) with Samfine Creation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Samfine Creation Holdings has no effect on the direction of Alignment Healthcare i.e., Alignment Healthcare and Samfine Creation go up and down completely randomly.
Pair Corralation between Alignment Healthcare and Samfine Creation
Given the investment horizon of 90 days Alignment Healthcare LLC is expected to generate 0.45 times more return on investment than Samfine Creation. However, Alignment Healthcare LLC is 2.21 times less risky than Samfine Creation. It trades about 0.37 of its potential returns per unit of risk. Samfine Creation Holdings is currently generating about -0.27 per unit of risk. If you would invest 1,173 in Alignment Healthcare LLC on November 8, 2024 and sell it today you would earn a total of 332.00 from holding Alignment Healthcare LLC or generate 28.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alignment Healthcare LLC vs. Samfine Creation Holdings
Performance |
| Timeline |
| Alignment Healthcare LLC |
| Samfine Creation Holdings |
Alignment Healthcare and Samfine Creation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alignment Healthcare and Samfine Creation
The main advantage of trading using opposite Alignment Healthcare and Samfine Creation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alignment Healthcare position performs unexpectedly, Samfine Creation 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 Samfine Creation will offset losses from the drop in Samfine Creation's long position.| Alignment Healthcare vs. Molina Healthcare | Alignment Healthcare vs. Clover Health Investments | Alignment Healthcare vs. Centene Corp | Alignment Healthcare vs. Elevance Health |
| Samfine Creation vs. Goosehead Insurance | Samfine Creation vs. Pekin Life Insurance | Samfine Creation vs. CECO Environmental Corp | Samfine Creation vs. Radian Group |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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