Correlation Between ISpecimen and Alta Global
Can any of the company-specific risk be diversified away by investing in both ISpecimen and Alta Global 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 ISpecimen and Alta Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iSpecimen and Alta Global Group, you can compare the effects of market volatilities on ISpecimen and Alta Global 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 ISpecimen with a short position of Alta Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of ISpecimen and Alta Global.
Diversification Opportunities for ISpecimen and Alta Global
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ISpecimen and Alta is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding iSpecimen and Alta Global Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alta Global Group and ISpecimen 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 iSpecimen are associated (or correlated) with Alta Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alta Global Group has no effect on the direction of ISpecimen i.e., ISpecimen and Alta Global go up and down completely randomly.
Pair Corralation between ISpecimen and Alta Global
Given the investment horizon of 90 days iSpecimen is expected to generate 1.12 times more return on investment than Alta Global. However, ISpecimen is 1.12 times more volatile than Alta Global Group. It trades about -0.03 of its potential returns per unit of risk. Alta Global Group is currently generating about -0.06 per unit of risk. If you would invest 2,700 in iSpecimen on December 2, 2024 and sell it today you would lose (2,534) from holding iSpecimen or give up 93.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 46.87% |
| Values | Daily Returns |
iSpecimen vs. Alta Global Group
Performance |
| Timeline |
| iSpecimen |
| Alta Global Group |
ISpecimen and Alta Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ISpecimen and Alta Global
The main advantage of trading using opposite ISpecimen and Alta Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ISpecimen position performs unexpectedly, Alta Global 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 Alta Global will offset losses from the drop in Alta Global's long position.| ISpecimen vs. Fonar | ||
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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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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