Correlation Between Babylon Holdings and Mitesco
Can any of the company-specific risk be diversified away by investing in both Babylon Holdings and Mitesco 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 Mitesco into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Babylon Holdings and Mitesco, you can compare the effects of market volatilities on Babylon Holdings and Mitesco 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 Mitesco. Check out your portfolio center. Please also check ongoing floating volatility patterns of Babylon Holdings and Mitesco.
Diversification Opportunities for Babylon Holdings and Mitesco
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Babylon and Mitesco is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Babylon Holdings and Mitesco in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mitesco 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 Mitesco. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mitesco has no effect on the direction of Babylon Holdings i.e., Babylon Holdings and Mitesco go up and down completely randomly.
Pair Corralation between Babylon Holdings and Mitesco
If you would invest 26.00 in Mitesco on August 25, 2024 and sell it today you would earn a total of 3.00 from holding Mitesco or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Babylon Holdings vs. Mitesco
Performance |
| Timeline |
| Babylon Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Mitesco |
Babylon Holdings and Mitesco Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Babylon Holdings and Mitesco
The main advantage of trading using opposite Babylon Holdings and Mitesco positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Babylon Holdings position performs unexpectedly, Mitesco 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 Mitesco will offset losses from the drop in Mitesco's long position.| Babylon Holdings vs. FOXO Technologies | Babylon Holdings vs. Heartbeam | Babylon Holdings vs. EUDA Health Holdings | Babylon Holdings vs. Nutex Health |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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