Correlation Between Babylon Holdings and PPJ Healthcare
Can any of the company-specific risk be diversified away by investing in both Babylon Holdings and PPJ Healthcare 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 PPJ Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Babylon Holdings and PPJ Healthcare Enterprises, you can compare the effects of market volatilities on Babylon Holdings and PPJ Healthcare 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 PPJ Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Babylon Holdings and PPJ Healthcare.
Diversification Opportunities for Babylon Holdings and PPJ Healthcare
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Babylon and PPJ is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Babylon Holdings and PPJ Healthcare Enterprises in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPJ Healthcare Enter 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 PPJ Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPJ Healthcare Enter has no effect on the direction of Babylon Holdings i.e., Babylon Holdings and PPJ Healthcare go up and down completely randomly.
Pair Corralation between Babylon Holdings and PPJ Healthcare
If you would invest 0.01 in PPJ Healthcare Enterprises on August 29, 2024 and sell it today you would earn a total of 0.00 from holding PPJ Healthcare Enterprises or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Babylon Holdings vs. PPJ Healthcare Enterprises
Performance |
| Timeline |
| Babylon Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| PPJ Healthcare Enter |
Babylon Holdings and PPJ Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Babylon Holdings and PPJ Healthcare
The main advantage of trading using opposite Babylon Holdings and PPJ Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Babylon Holdings position performs unexpectedly, PPJ Healthcare 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 PPJ Healthcare will offset losses from the drop in PPJ Healthcare'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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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