Correlation Between American Leisure and Active Health
Can any of the company-specific risk be diversified away by investing in both American Leisure 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 American Leisure and Active Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between American Leisure Holdings and Active Health Foods, you can compare the effects of market volatilities on American Leisure 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 American Leisure with a short position of Active Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Leisure and Active Health.
Diversification Opportunities for American Leisure and Active Health
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between American and Active is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding American Leisure 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 American Leisure 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 American Leisure 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 American Leisure i.e., American Leisure and Active Health go up and down completely randomly.
Pair Corralation between American Leisure and Active Health
If you would invest 0.02 in American Leisure Holdings on August 26, 2024 and sell it today you would earn a total of 0.00 from holding American Leisure Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
American Leisure Holdings vs. Active Health Foods
Performance |
| Timeline |
| American Leisure Holdings |
| Active Health Foods |
American Leisure and Active Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Leisure and Active Health
The main advantage of trading using opposite American Leisure and Active Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Leisure 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.| American Leisure vs. Absolute Health and | American Leisure vs. China Health Management | American Leisure vs. Embrace Change Acquisition | American Leisure vs. TransAKT |
| Active Health vs. Ventana Biotech | Active Health vs. Gold Ent Group | Active Health vs. Profitable Develop | Active Health vs. American Leisure 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |