Correlation Between BASE and Advanced Health
Can any of the company-specific risk be diversified away by investing in both BASE and Advanced 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 BASE and Advanced Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BASE Inc and Advanced Health Intelligence, you can compare the effects of market volatilities on BASE and Advanced 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 BASE with a short position of Advanced Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of BASE and Advanced Health.
Diversification Opportunities for BASE and Advanced Health
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BASE and Advanced is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding BASE Inc and Advanced Health Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Health Inte and BASE 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 BASE Inc are associated (or correlated) with Advanced Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Health Inte has no effect on the direction of BASE i.e., BASE and Advanced Health go up and down completely randomly.
Pair Corralation between BASE and Advanced Health
If you would invest 128.00 in BASE Inc on September 1, 2024 and sell it today you would earn a total of 22.00 from holding BASE Inc or generate 17.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BASE Inc vs. Advanced Health Intelligence
Performance |
| Timeline |
| BASE Inc |
| Advanced Health Inte |
BASE and Advanced Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BASE and Advanced Health
The main advantage of trading using opposite BASE and Advanced Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BASE position performs unexpectedly, Advanced 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 Advanced Health will offset losses from the drop in Advanced Health's long position.| BASE vs. CurrentC Power | BASE vs. Agent Information Software | BASE vs. Maxwell Resource | BASE vs. Ackroo Inc |
| Advanced Health vs. Sphere Entertainment Co | Advanced Health vs. Alvotech | Advanced Health vs. Anterix | Advanced Health vs. Sonida Senior Living |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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