Correlation Between Health and Accent Resources
Can any of the company-specific risk be diversified away by investing in both Health and Accent Resources 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 Health and Accent Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Health and Plant and Accent Resources NL, you can compare the effects of market volatilities on Health and Accent Resources 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 Health with a short position of Accent Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Health and Accent Resources.
Diversification Opportunities for Health and Accent Resources
-1.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Health and Accent is -1.0. Overlapping area represents the amount of risk that can be diversified away by holding Health and Plant and Accent Resources NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accent Resources and 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 Health and Plant are associated (or correlated) with Accent Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accent Resources has no effect on the direction of Health i.e., Health and Accent Resources go up and down completely randomly.
Pair Corralation between Health and Accent Resources
If you would invest 0.60 in Accent Resources NL on November 9, 2024 and sell it today you would earn a total of 0.00 from holding Accent Resources NL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Health and Plant vs. Accent Resources NL
Performance |
| Timeline |
| Health and Plant |
| Accent Resources |
Health and Accent Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Health and Accent Resources
The main advantage of trading using opposite Health and Accent Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Health position performs unexpectedly, Accent Resources 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 Accent Resources will offset losses from the drop in Accent Resources' long position.| Health vs. Aneka Tambang Tbk | Health vs. ANZ Group Holdings | Health vs. Australia and New | Health vs. ANZ Group Holdings |
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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