Correlation Between Energy Resources and Singular Health
Can any of the company-specific risk be diversified away by investing in both Energy Resources 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 Energy Resources and Singular Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Energy Resources and Singular Health Group, you can compare the effects of market volatilities on Energy Resources 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 Energy Resources with a short position of Singular Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energy Resources and Singular Health.
Diversification Opportunities for Energy Resources and Singular Health
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Energy and Singular is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Energy Resources 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 Energy Resources 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 Energy Resources 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 Energy Resources i.e., Energy Resources and Singular Health go up and down completely randomly.
Pair Corralation between Energy Resources and Singular Health
Assuming the 90 days trading horizon Energy Resources is expected to generate 1.86 times less return on investment than Singular Health. In addition to that, Energy Resources is 2.17 times more volatile than Singular Health Group. It trades about 0.02 of its total potential returns per unit of risk. Singular Health Group is currently generating about 0.09 per unit of volatility. If you would invest 4.00 in Singular Health Group on September 4, 2024 and sell it today you would earn a total of 8.00 from holding Singular Health Group or generate 200.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Energy Resources vs. Singular Health Group
Performance |
| Timeline |
| Energy Resources |
| Singular Health Group |
Energy Resources and Singular Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Energy Resources and Singular Health
The main advantage of trading using opposite Energy Resources and Singular Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Energy Resources 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.| Energy Resources vs. Singular Health Group | Energy Resources vs. Microequities Asset Management | Energy Resources vs. MFF Capital Investments | Energy Resources vs. Step One Clothing |
| Singular Health vs. Aneka Tambang Tbk | Singular Health vs. BHP Group Limited | Singular Health vs. Commonwealth Bank of | Singular Health vs. Commonwealth Bank of |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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