Correlation Between Global Health and Singular Health
Can any of the company-specific risk be diversified away by investing in both Global Health 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 Global Health and Singular Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Global Health and Singular Health Group, you can compare the effects of market volatilities on Global Health 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 Global Health with a short position of Singular Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global Health and Singular Health.
Diversification Opportunities for Global Health and Singular Health
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Global and Singular is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Global Health 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 Global Health 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 Global Health 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 Global Health i.e., Global Health and Singular Health go up and down completely randomly.
Pair Corralation between Global Health and Singular Health
Assuming the 90 days trading horizon Global Health is expected to generate 4.3 times less return on investment than Singular Health. But when comparing it to its historical volatility, Global Health is 1.55 times less risky than Singular Health. It trades about 0.03 of its potential returns per unit of risk. Singular Health Group is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 4.10 in Singular Health Group on September 1, 2024 and sell it today you would earn a total of 6.90 from holding Singular Health Group or generate 168.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Global Health vs. Singular Health Group
Performance |
| Timeline |
| Global Health |
| Singular Health Group |
Global Health and Singular Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Global Health and Singular Health
The main advantage of trading using opposite Global Health and Singular Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global Health 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.| Global Health vs. Alto Metals | Global Health vs. Ras Technology Holdings | Global Health vs. Ainsworth Game Technology | Global Health vs. Aurelia Metals |
| Singular Health vs. Kkr Credit Income | Singular Health vs. Aussie Broadband | Singular Health vs. Lendlease Group | Singular Health vs. Prime Financial Group |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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