Correlation Between Awakn Life and America Great
Can any of the company-specific risk be diversified away by investing in both Awakn Life and America Great 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 Awakn Life and America Great into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Awakn Life Sciences and America Great Health, you can compare the effects of market volatilities on Awakn Life and America Great 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 Awakn Life with a short position of America Great. Check out your portfolio center. Please also check ongoing floating volatility patterns of Awakn Life and America Great.
Diversification Opportunities for Awakn Life and America Great
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Awakn and America is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Awakn Life Sciences and America Great Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on America Great Health and Awakn Life 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 Awakn Life Sciences are associated (or correlated) with America Great. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of America Great Health has no effect on the direction of Awakn Life i.e., Awakn Life and America Great go up and down completely randomly.
Pair Corralation between Awakn Life and America Great
If you would invest 0.01 in America Great Health on November 28, 2024 and sell it today you would earn a total of 0.01 from holding America Great Health or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Awakn Life Sciences vs. America Great Health
Performance |
| Timeline |
| Awakn Life Sciences |
| America Great Health |
Awakn Life and America Great Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Awakn Life and America Great
The main advantage of trading using opposite Awakn Life and America Great positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Awakn Life position performs unexpectedly, America Great 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 America Great will offset losses from the drop in America Great's long position.| Awakn Life vs. Nova Mentis Life | Awakn Life vs. PsyBio Therapeutics Corp | Awakn Life vs. HAVN Life Sciences | Awakn Life vs. Cellectis SA |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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