Correlation Between Advanced Health and BASE
Can any of the company-specific risk be diversified away by investing in both Advanced Health and BASE 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 Advanced Health and BASE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Health Intelligence and BASE Inc, you can compare the effects of market volatilities on Advanced Health and BASE 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 Advanced Health with a short position of BASE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Health and BASE.
Diversification Opportunities for Advanced Health and BASE
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Advanced and BASE is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Health Intelligence and BASE Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BASE Inc and Advanced 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 Advanced Health Intelligence are associated (or correlated) with BASE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BASE Inc has no effect on the direction of Advanced Health i.e., Advanced Health and BASE go up and down completely randomly.
Pair Corralation between Advanced Health and BASE
If you would invest 128.00 in BASE Inc on September 1, 2024 and sell it today you would earn a total of 22.00 from holding BASE Inc or generate 17.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Health Intelligence vs. BASE Inc
Performance |
| Timeline |
| Advanced Health Inte |
| BASE Inc |
Advanced Health and BASE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Health and BASE
The main advantage of trading using opposite Advanced Health and BASE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Health position performs unexpectedly, BASE 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 BASE will offset losses from the drop in BASE's long position.| Advanced Health vs. Sphere Entertainment Co | Advanced Health vs. Alvotech | Advanced Health vs. Anterix | Advanced Health vs. Sonida Senior Living |
| BASE vs. CurrentC Power | BASE vs. Agent Information Software | BASE vs. Maxwell Resource | BASE vs. Ackroo Inc |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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