Correlation Between Federal National and Advanced Health
Can any of the company-specific risk be diversified away by investing in both Federal National and Advanced 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 Federal National and Advanced Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Federal National Mortgage and Advanced Health Intelligence, you can compare the effects of market volatilities on Federal National and Advanced 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 Federal National with a short position of Advanced Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Federal National and Advanced Health.
Diversification Opportunities for Federal National and Advanced Health
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Federal and Advanced is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Federal National Mortgage and Advanced Health Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Health Inte and Federal National 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 Federal National Mortgage are associated (or correlated) with Advanced Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Health Inte has no effect on the direction of Federal National i.e., Federal National and Advanced Health go up and down completely randomly.
Pair Corralation between Federal National and Advanced Health
If you would invest 139.00 in Federal National Mortgage on September 1, 2024 and sell it today you would earn a total of 174.00 from holding Federal National Mortgage or generate 125.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Federal National Mortgage vs. Advanced Health Intelligence
Performance |
| Timeline |
| Federal National Mortgage |
| Advanced Health Inte |
Federal National and Advanced Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Federal National and Advanced Health
The main advantage of trading using opposite Federal National and Advanced Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Federal National position performs unexpectedly, Advanced 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 Advanced Health will offset losses from the drop in Advanced Health's long position.| Federal National vs. Inhibrx | Federal National vs. Tarsus Pharmaceuticals | Federal National vs. Procter Gamble | Federal National vs. Rocky Brands |
| Advanced Health vs. Sphere Entertainment Co | Advanced Health vs. Alvotech | Advanced Health vs. Anterix | Advanced Health vs. Sonida Senior Living |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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