Correlation Between Cboe UK and Abingdon Health
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By analyzing existing cross correlation between Cboe UK Consumer and Abingdon Health Plc, you can compare the effects of market volatilities on Cboe UK and Abingdon 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 Cboe UK with a short position of Abingdon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cboe UK and Abingdon Health.
Diversification Opportunities for Cboe UK and Abingdon Health
-0.91 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Cboe and Abingdon is -0.91. Overlapping area represents the amount of risk that can be diversified away by holding Cboe UK Consumer and Abingdon Health Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abingdon Health Plc and Cboe UK 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 Cboe UK Consumer are associated (or correlated) with Abingdon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abingdon Health Plc has no effect on the direction of Cboe UK i.e., Cboe UK and Abingdon Health go up and down completely randomly.
Pair Corralation between Cboe UK and Abingdon Health
Assuming the 90 days trading horizon Cboe UK Consumer is expected to generate 0.46 times more return on investment than Abingdon Health. However, Cboe UK Consumer is 2.2 times less risky than Abingdon Health. It trades about 0.5 of its potential returns per unit of risk. Abingdon Health Plc is currently generating about -0.13 per unit of risk. If you would invest 2,925,026 in Cboe UK Consumer on August 30, 2024 and sell it today you would earn a total of 336,221 from holding Cboe UK Consumer or generate 11.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cboe UK Consumer vs. Abingdon Health Plc
Performance |
| Timeline |
Cboe UK and Abingdon Health Volatility Contrast
Predicted Return Density |
| Returns |
Cboe UK Consumer
Pair trading matchups for Cboe UK
Abingdon Health Plc
Pair trading matchups for Abingdon Health
Pair Trading with Cboe UK and Abingdon Health
The main advantage of trading using opposite Cboe UK and Abingdon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cboe UK position performs unexpectedly, Abingdon 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 Abingdon Health will offset losses from the drop in Abingdon Health's long position.| Cboe UK vs. Liberty Media Corp | Cboe UK vs. XLMedia PLC | Cboe UK vs. Scandinavian Tobacco Group | Cboe UK vs. Catena Media PLC |
| Abingdon Health vs. Samsung Electronics Co | Abingdon Health vs. Samsung Electronics Co | Abingdon Health vs. Hyundai Motor | Abingdon Health vs. Toyota Motor Corp |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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