Correlation Between Babylon Holdings and Cloud DX
Can any of the company-specific risk be diversified away by investing in both Babylon Holdings and Cloud DX 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 Babylon Holdings and Cloud DX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Babylon Holdings and Cloud DX, you can compare the effects of market volatilities on Babylon Holdings and Cloud DX 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 Babylon Holdings with a short position of Cloud DX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Babylon Holdings and Cloud DX.
Diversification Opportunities for Babylon Holdings and Cloud DX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Babylon and Cloud is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Babylon Holdings and Cloud DX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloud DX and Babylon Holdings 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 Babylon Holdings are associated (or correlated) with Cloud DX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloud DX has no effect on the direction of Babylon Holdings i.e., Babylon Holdings and Cloud DX go up and down completely randomly.
Pair Corralation between Babylon Holdings and Cloud DX
If you would invest 8.40 in Cloud DX on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Cloud DX or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Babylon Holdings vs. Cloud DX
Performance |
| Timeline |
| Babylon Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Cloud DX |
Babylon Holdings and Cloud DX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Babylon Holdings and Cloud DX
The main advantage of trading using opposite Babylon Holdings and Cloud DX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Babylon Holdings position performs unexpectedly, Cloud DX 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 Cloud DX will offset losses from the drop in Cloud DX's long position.| Babylon Holdings vs. FOXO Technologies | Babylon Holdings vs. Heartbeam | Babylon Holdings vs. EUDA Health Holdings | Babylon Holdings vs. Nutex Health |
| Cloud DX vs. Caduceus Software Systems | Cloud DX vs. Cogstate Limited | Cloud DX vs. Cognetivity Neurosciences | Cloud DX vs. Mednow Inc |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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