Correlation Between CSL and Singular Health
Can any of the company-specific risk be diversified away by investing in both CSL and Singular 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 CSL and Singular Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CSL and Singular Health Group, you can compare the effects of market volatilities on CSL and Singular 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 CSL with a short position of Singular Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of CSL and Singular Health.
Diversification Opportunities for CSL and Singular Health
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CSL and Singular is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding CSL and Singular Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singular Health Group and CSL 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 CSL are associated (or correlated) with Singular Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singular Health Group has no effect on the direction of CSL i.e., CSL and Singular Health go up and down completely randomly.
Pair Corralation between CSL and Singular Health
Assuming the 90 days trading horizon CSL is expected to under-perform the Singular Health. But the stock apears to be less risky and, when comparing its historical volatility, CSL is 6.65 times less risky than Singular Health. The stock trades about 0.0 of its potential returns per unit of risk. The Singular Health Group is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 14.00 in Singular Health Group on August 29, 2024 and sell it today you would lose (2.00) from holding Singular Health Group or give up 14.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CSL vs. Singular Health Group
Performance |
| Timeline |
| CSL |
| Singular Health Group |
CSL and Singular Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CSL and Singular Health
The main advantage of trading using opposite CSL and Singular Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CSL position performs unexpectedly, Singular 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 Singular Health will offset losses from the drop in Singular Health's long position.| CSL vs. Bio Gene Technology | CSL vs. Viva Leisure | CSL vs. Sandon Capital Investments | CSL vs. Diversified United Investment |
| Singular Health vs. Westpac Banking | Singular Health vs. Champion Iron | Singular Health vs. Ridley | Singular Health vs. Peel Mining |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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