Correlation Between Astrana Health and Turning Point
Can any of the company-specific risk be diversified away by investing in both Astrana Health and Turning Point 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 Turning Point into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astrana Health and Turning Point Brands, you can compare the effects of market volatilities on Astrana Health and Turning Point 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 Turning Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astrana Health and Turning Point.
Diversification Opportunities for Astrana Health and Turning Point
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astrana and Turning is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Astrana Health and Turning Point Brands in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Turning Point Brands 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 Turning Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Turning Point Brands has no effect on the direction of Astrana Health i.e., Astrana Health and Turning Point go up and down completely randomly.
Pair Corralation between Astrana Health and Turning Point
Given the investment horizon of 90 days Astrana Health is expected to generate 1.95 times less return on investment than Turning Point. In addition to that, Astrana Health is 1.52 times more volatile than Turning Point Brands. It trades about 0.04 of its total potential returns per unit of risk. Turning Point Brands is currently generating about 0.12 per unit of volatility. If you would invest 2,014 in Turning Point Brands on September 4, 2024 and sell it today you would earn a total of 4,047 from holding Turning Point Brands or generate 200.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Astrana Health vs. Turning Point Brands
Performance |
| Timeline |
| Astrana Health |
| Turning Point Brands |
Astrana Health and Turning Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Astrana Health and Turning Point
The main advantage of trading using opposite Astrana Health and Turning Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astrana Health position performs unexpectedly, Turning Point 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 Turning Point will offset losses from the drop in Turning Point'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 |
| Turning Point vs. Universal | Turning Point vs. Imperial Brands PLC | Turning Point vs. British American Tobacco | Turning Point vs. Philip Morris International |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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