Correlation Between Inspiration Healthcare and AMG Advanced
Can any of the company-specific risk be diversified away by investing in both Inspiration Healthcare and AMG Advanced 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 Inspiration Healthcare and AMG Advanced into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Inspiration Healthcare Group and AMG Advanced Metallurgical, you can compare the effects of market volatilities on Inspiration Healthcare and AMG Advanced 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 Inspiration Healthcare with a short position of AMG Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inspiration Healthcare and AMG Advanced.
Diversification Opportunities for Inspiration Healthcare and AMG Advanced
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Inspiration and AMG is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Inspiration Healthcare Group and AMG Advanced Metallurgical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AMG Advanced Metallu and Inspiration Healthcare 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 Inspiration Healthcare Group are associated (or correlated) with AMG Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AMG Advanced Metallu has no effect on the direction of Inspiration Healthcare i.e., Inspiration Healthcare and AMG Advanced go up and down completely randomly.
Pair Corralation between Inspiration Healthcare and AMG Advanced
Assuming the 90 days trading horizon Inspiration Healthcare Group is expected to under-perform the AMG Advanced. In addition to that, Inspiration Healthcare is 2.15 times more volatile than AMG Advanced Metallurgical. It trades about -0.05 of its total potential returns per unit of risk. AMG Advanced Metallurgical is currently generating about -0.05 per unit of volatility. If you would invest 2,190 in AMG Advanced Metallurgical on September 4, 2024 and sell it today you would lose (719.00) from holding AMG Advanced Metallurgical or give up 32.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inspiration Healthcare Group vs. AMG Advanced Metallurgical
Performance |
| Timeline |
| Inspiration Healthcare |
| AMG Advanced Metallu |
Inspiration Healthcare and AMG Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inspiration Healthcare and AMG Advanced
The main advantage of trading using opposite Inspiration Healthcare and AMG Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inspiration Healthcare position performs unexpectedly, AMG Advanced 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 AMG Advanced will offset losses from the drop in AMG Advanced's long position.| Inspiration Healthcare vs. AMG Advanced Metallurgical | Inspiration Healthcare vs. Hochschild Mining plc | Inspiration Healthcare vs. McEwen Mining | Inspiration Healthcare vs. Virgin Wines UK |
| AMG Advanced vs. Coor Service Management | AMG Advanced vs. Telecom Italia SpA | AMG Advanced vs. Zoom Video Communications | AMG Advanced vs. Vulcan Materials Co |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |