Correlation Between Astrana Health and Fluent
Can any of the company-specific risk be diversified away by investing in both Astrana Health and Fluent 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 Fluent into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astrana Health and Fluent Inc, you can compare the effects of market volatilities on Astrana Health and Fluent 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 Fluent. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astrana Health and Fluent.
Diversification Opportunities for Astrana Health and Fluent
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Astrana and Fluent is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Astrana Health and Fluent Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fluent Inc 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 Fluent. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fluent Inc has no effect on the direction of Astrana Health i.e., Astrana Health and Fluent go up and down completely randomly.
Pair Corralation between Astrana Health and Fluent
Given the investment horizon of 90 days Astrana Health is expected to under-perform the Fluent. In addition to that, Astrana Health is 1.18 times more volatile than Fluent Inc. It trades about -0.14 of its total potential returns per unit of risk. Fluent Inc is currently generating about -0.12 per unit of volatility. If you would invest 305.00 in Fluent Inc on September 4, 2024 and sell it today you would lose (39.00) from holding Fluent Inc or give up 12.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astrana Health vs. Fluent Inc
Performance |
| Timeline |
| Astrana Health |
| Fluent Inc |
Astrana Health and Fluent Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astrana Health and Fluent
The main advantage of trading using opposite Astrana Health and Fluent positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astrana Health position performs unexpectedly, Fluent 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 Fluent will offset losses from the drop in Fluent's long position.| Astrana Health vs. Turning Point Brands | Astrana Health vs. Altria Group | Astrana Health vs. Willamette Valley Vineyards | Astrana Health vs. Accel Entertainment |
| Fluent vs. Marchex | Fluent vs. Dolphin Entertainment | Fluent vs. Beyond Commerce | Fluent vs. MGO Global Common |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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