Correlation Between Mitesco and Babylon Holdings
Can any of the company-specific risk be diversified away by investing in both Mitesco and Babylon Holdings 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 Mitesco and Babylon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mitesco and Babylon Holdings, you can compare the effects of market volatilities on Mitesco and Babylon Holdings 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 Mitesco with a short position of Babylon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mitesco and Babylon Holdings.
Diversification Opportunities for Mitesco and Babylon Holdings
-0.53 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Mitesco and Babylon is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Mitesco and Babylon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Babylon Holdings and Mitesco 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 Mitesco are associated (or correlated) with Babylon Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Babylon Holdings has no effect on the direction of Mitesco i.e., Mitesco and Babylon Holdings go up and down completely randomly.
Pair Corralation between Mitesco and Babylon Holdings
If you would invest 26.00 in Mitesco on August 25, 2024 and sell it today you would earn a total of 3.00 from holding Mitesco or generate 11.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Mitesco vs. Babylon Holdings
Performance |
| Timeline |
| Mitesco |
| Babylon Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Mitesco and Babylon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mitesco and Babylon Holdings
The main advantage of trading using opposite Mitesco and Babylon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mitesco position performs unexpectedly, Babylon Holdings 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 Babylon Holdings will offset losses from the drop in Babylon Holdings' long position.The idea behind Mitesco and Babylon Holdings pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Babylon Holdings vs. FOXO Technologies | Babylon Holdings vs. Heartbeam | Babylon Holdings vs. EUDA Health Holdings | Babylon Holdings vs. Nutex Health |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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