Correlation Between Aurelia Metals and Singular Health

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Can any of the company-specific risk be diversified away by investing in both Aurelia Metals and Singular 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 Aurelia Metals and Singular Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Aurelia Metals and Singular Health Group, you can compare the effects of market volatilities on Aurelia Metals and Singular 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 Aurelia Metals with a short position of Singular Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aurelia Metals and Singular Health.

Diversification Opportunities for Aurelia Metals and Singular Health

0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between Aurelia and Singular is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Aurelia Metals and Singular Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singular Health Group and Aurelia Metals 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 Aurelia Metals are associated (or correlated) with Singular Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singular Health Group has no effect on the direction of Aurelia Metals i.e., Aurelia Metals and Singular Health go up and down completely randomly.

Pair Corralation between Aurelia Metals and Singular Health

Assuming the 90 days trading horizon Aurelia Metals is expected to generate 3.26 times less return on investment than Singular Health. But when comparing it to its historical volatility, Aurelia Metals is 1.14 times less risky than Singular Health. It trades about 0.05 of its potential returns per unit of risk. Singular Health Group is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  9.20  in Singular Health Group on August 28, 2024 and sell it today you would earn a total of  2.80  from holding Singular Health Group or generate 30.43% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Aurelia Metals  vs.  Singular Health Group

 Performance 
       Timeline  
Aurelia Metals 

Risk-Adjusted Performance

4 of 100

 
Weak
 
Strong
Insignificant
Compared to the overall equity markets, risk-adjusted returns on investments in Aurelia Metals are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, Aurelia Metals unveiled solid returns over the last few months and may actually be approaching a breakup point.
Singular Health Group 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Singular Health Group are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain technical and fundamental indicators, Singular Health unveiled solid returns over the last few months and may actually be approaching a breakup point.

Aurelia Metals and Singular Health Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Aurelia Metals and Singular Health

The main advantage of trading using opposite Aurelia Metals and Singular Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurelia Metals position performs unexpectedly, Singular 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 Singular Health will offset losses from the drop in Singular Health's long position.
The idea behind Aurelia Metals and Singular Health Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Stocks Directory module to find actively traded stocks across global markets.

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