Correlation Between Church Crawford and Active Health
Can any of the company-specific risk be diversified away by investing in both Church Crawford and Active 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 Church Crawford and Active Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Church Crawford and Active Health Foods, you can compare the effects of market volatilities on Church Crawford and Active 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 Church Crawford with a short position of Active Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Church Crawford and Active Health.
Diversification Opportunities for Church Crawford and Active Health
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Church and Active is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Church Crawford and Active Health Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Active Health Foods and Church Crawford 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 Church Crawford are associated (or correlated) with Active Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Active Health Foods has no effect on the direction of Church Crawford i.e., Church Crawford and Active Health go up and down completely randomly.
Pair Corralation between Church Crawford and Active Health
Given the investment horizon of 90 days Church Crawford is expected to generate 3.83 times less return on investment than Active Health. But when comparing it to its historical volatility, Church Crawford is 3.34 times less risky than Active Health. It trades about 0.06 of its potential returns per unit of risk. Active Health Foods is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 0.02 in Active Health Foods on September 3, 2024 and sell it today you would lose (0.01) from holding Active Health Foods or give up 50.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
Church Crawford vs. Active Health Foods
Performance |
| Timeline |
| Church Crawford |
| Active Health Foods |
Church Crawford and Active Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Church Crawford and Active Health
The main advantage of trading using opposite Church Crawford and Active Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Church Crawford position performs unexpectedly, Active 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 Active Health will offset losses from the drop in Active Health's long position.| Church Crawford vs. Oncologix Tech | Church Crawford vs. JPX Global | Church Crawford vs. Profitable Develop | Church Crawford vs. Coastal Capital Acq |
| Active Health vs. Ventana Biotech | Active Health vs. Gold Ent Group | Active Health vs. Profitable Develop | Active Health vs. American Leisure Holdings |
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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