Correlation Between Astrana Health and 51Talk Online
Can any of the company-specific risk be diversified away by investing in both Astrana Health and 51Talk Online 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 51Talk Online into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astrana Health and 51Talk Online Education, you can compare the effects of market volatilities on Astrana Health and 51Talk Online 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 51Talk Online. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astrana Health and 51Talk Online.
Diversification Opportunities for Astrana Health and 51Talk Online
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Astrana and 51Talk is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Astrana Health and 51Talk Online Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 51Talk Online Education 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 51Talk Online. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 51Talk Online Education has no effect on the direction of Astrana Health i.e., Astrana Health and 51Talk Online go up and down completely randomly.
Pair Corralation between Astrana Health and 51Talk Online
Given the investment horizon of 90 days Astrana Health is expected to under-perform the 51Talk Online. In addition to that, Astrana Health is 1.46 times more volatile than 51Talk Online Education. It trades about -0.18 of its total potential returns per unit of risk. 51Talk Online Education is currently generating about -0.26 per unit of volatility. If you would invest 1,590 in 51Talk Online Education on September 3, 2024 and sell it today you would lose (290.00) from holding 51Talk Online Education or give up 18.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astrana Health vs. 51Talk Online Education
Performance |
| Timeline |
| Astrana Health |
| 51Talk Online Education |
Astrana Health and 51Talk Online Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astrana Health and 51Talk Online
The main advantage of trading using opposite Astrana Health and 51Talk Online positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astrana Health position performs unexpectedly, 51Talk Online 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 51Talk Online will offset losses from the drop in 51Talk Online's long position.| Astrana Health vs. Xunlei Ltd Adr | Astrana Health vs. Ambev SA ADR | Astrana Health vs. Global E Online | Astrana Health vs. The Coca Cola |
| 51Talk Online vs. Wah Fu Education | 51Talk Online vs. Four Seasons Education | 51Talk Online vs. Sunlands Technology Group | 51Talk Online vs. China Liberal Education |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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