Correlation Between American Leisure and Absolute Health
Can any of the company-specific risk be diversified away by investing in both American Leisure and Absolute 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 Absolute 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 Absolute Health and, you can compare the effects of market volatilities on American Leisure and Absolute 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 Absolute Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of American Leisure and Absolute Health.
Diversification Opportunities for American Leisure and Absolute Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between American and Absolute is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding American Leisure Holdings and Absolute Health and in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Absolute Health 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 Absolute Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Absolute Health has no effect on the direction of American Leisure i.e., American Leisure and Absolute Health go up and down completely randomly.
Pair Corralation between American Leisure and Absolute Health
Given the investment horizon of 90 days American Leisure Holdings is expected to generate 0.55 times more return on investment than Absolute Health. However, American Leisure Holdings is 1.8 times less risky than Absolute Health. It trades about 0.16 of its potential returns per unit of risk. Absolute Health and is currently generating about 0.07 per unit of risk. 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 | Flat |
| Strength | Insignificant |
| Accuracy | 99.75% |
| Values | Daily Returns |
American Leisure Holdings vs. Absolute Health and
Performance |
| Timeline |
| American Leisure Holdings |
| Absolute Health |
American Leisure and Absolute Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with American Leisure and Absolute Health
The main advantage of trading using opposite American Leisure and Absolute Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if American Leisure position performs unexpectedly, Absolute 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 Absolute Health will offset losses from the drop in Absolute 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 |
| Absolute Health vs. Gemz Corp | Absolute Health vs. AVVAA World Health | Absolute Health vs. Newron Sport | Absolute Health vs. Tanke Biosciences |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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