Correlation Between Australian United and Singular Health
Can any of the company-specific risk be diversified away by investing in both Australian United and Singular 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 Australian United and Singular Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Australian United Investment and Singular Health Group, you can compare the effects of market volatilities on Australian United and Singular 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 Australian United with a short position of Singular Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Australian United and Singular Health.
Diversification Opportunities for Australian United and Singular Health
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Australian and Singular is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Australian United Investment and Singular Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singular Health Group and Australian United 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 Australian United Investment are associated (or correlated) with Singular Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singular Health Group has no effect on the direction of Australian United i.e., Australian United and Singular Health go up and down completely randomly.
Pair Corralation between Australian United and Singular Health
Assuming the 90 days trading horizon Australian United is expected to generate 11.16 times less return on investment than Singular Health. But when comparing it to its historical volatility, Australian United Investment is 10.57 times less risky than Singular Health. It trades about 0.08 of its potential returns per unit of risk. Singular Health Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4.10 in Singular Health Group on September 1, 2024 and sell it today you would earn a total of 6.90 from holding Singular Health Group or generate 168.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Australian United Investment vs. Singular Health Group
Performance |
| Timeline |
| Australian United |
| Singular Health Group |
Australian United and Singular Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Australian United and Singular Health
The main advantage of trading using opposite Australian United and Singular Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Australian United position performs unexpectedly, Singular 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 Singular Health will offset losses from the drop in Singular Health's long position.| Australian United vs. Sandon Capital Investments | Australian United vs. Pinnacle Investment Management | Australian United vs. Macquarie Technology Group | Australian United vs. BKI Investment |
| Singular Health vs. Kkr Credit Income | Singular Health vs. Aussie Broadband | Singular Health vs. Lendlease Group | Singular Health vs. Prime Financial Group |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |