Correlation Between Alkame Holdings and Active Health
Can any of the company-specific risk be diversified away by investing in both Alkame Holdings and Active 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 Alkame Holdings and Active Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alkame Holdings and Active Health Foods, you can compare the effects of market volatilities on Alkame Holdings and Active 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 Alkame Holdings with a short position of Active Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alkame Holdings and Active Health.
Diversification Opportunities for Alkame Holdings and Active Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Alkame and Active is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Alkame Holdings and Active Health Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Active Health Foods and Alkame Holdings 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 Alkame Holdings are associated (or correlated) with Active Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Active Health Foods has no effect on the direction of Alkame Holdings i.e., Alkame Holdings and Active Health go up and down completely randomly.
Pair Corralation between Alkame Holdings and Active Health
Given the investment horizon of 90 days Alkame Holdings is expected to under-perform the Active Health. But the pink sheet apears to be less risky and, when comparing its historical volatility, Alkame Holdings is 5.07 times less risky than Active Health. The pink sheet trades about -0.06 of its potential returns per unit of risk. The Active Health Foods is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Active Health Foods on September 20, 2024 and sell it today you would earn a total of 0.00 from holding Active Health Foods or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Alkame Holdings vs. Active Health Foods
Performance |
| Timeline |
| Alkame Holdings |
| Active Health Foods |
Alkame Holdings and Active Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alkame Holdings and Active Health
The main advantage of trading using opposite Alkame Holdings and Active Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alkame Holdings position performs unexpectedly, Active 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 Active Health will offset losses from the drop in Active Health's long position.| Alkame Holdings vs. Hill Street Beverage | Alkame Holdings vs. Flow Beverage Corp | Alkame Holdings vs. Eq Energy Drink | Alkame Holdings vs. V Group |
| Active Health vs. V Group | Active Health vs. Fbec Worldwide | Active Health vs. Hiru Corporation | Active Health vs. Alkame 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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