Correlation Between Astrana Health and Awilco Drilling
Can any of the company-specific risk be diversified away by investing in both Astrana Health and Awilco Drilling 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 Astrana Health and Awilco Drilling into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astrana Health and Awilco Drilling PLC, you can compare the effects of market volatilities on Astrana Health and Awilco Drilling 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 Astrana Health with a short position of Awilco Drilling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astrana Health and Awilco Drilling.
Diversification Opportunities for Astrana Health and Awilco Drilling
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Astrana and Awilco is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Astrana Health and Awilco Drilling PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Awilco Drilling PLC and Astrana Health 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 Astrana Health are associated (or correlated) with Awilco Drilling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Awilco Drilling PLC has no effect on the direction of Astrana Health i.e., Astrana Health and Awilco Drilling go up and down completely randomly.
Pair Corralation between Astrana Health and Awilco Drilling
Given the investment horizon of 90 days Astrana Health is expected to under-perform the Awilco Drilling. In addition to that, Astrana Health is 9.63 times more volatile than Awilco Drilling PLC. It trades about -0.17 of its total potential returns per unit of risk. Awilco Drilling PLC is currently generating about -0.21 per unit of volatility. If you would invest 197.00 in Awilco Drilling PLC on September 5, 2024 and sell it today you would lose (5.00) from holding Awilco Drilling PLC or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astrana Health vs. Awilco Drilling PLC
Performance |
| Timeline |
| Astrana Health |
| Awilco Drilling PLC |
Astrana Health and Awilco Drilling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astrana Health and Awilco Drilling
The main advantage of trading using opposite Astrana Health and Awilco Drilling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astrana Health position performs unexpectedly, Awilco Drilling 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 Awilco Drilling will offset losses from the drop in Awilco Drilling's long position.| Astrana Health vs. Awilco Drilling PLC | Astrana Health vs. Univest Pennsylvania | Astrana Health vs. National CineMedia | Astrana Health vs. KeyCorp |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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