Correlation Between Aurelia Metals and Singular Health
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 Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Aurelia Metals vs. Singular Health Group
Performance |
Timeline |
Aurelia Metals |
Singular Health Group |
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.Aurelia Metals vs. Aristocrat Leisure | Aurelia Metals vs. Genetic Technologies | Aurelia Metals vs. Thorney Technologies | Aurelia Metals vs. Ras Technology Holdings |
Singular Health vs. Vulcan Steel | Singular Health vs. Hotel Property Investments | Singular Health vs. The Environmental Group | Singular Health vs. Regal Investment |
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 Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |