Correlation Between Nutex Health and Babylon Holdings
Can any of the company-specific risk be diversified away by investing in both Nutex Health 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 Nutex Health and Babylon Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Nutex Health and Babylon Holdings, you can compare the effects of market volatilities on Nutex Health 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 Nutex Health with a short position of Babylon Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nutex Health and Babylon Holdings.
Diversification Opportunities for Nutex Health and Babylon Holdings
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Nutex and Babylon is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Nutex Health and Babylon Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Babylon Holdings and Nutex 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 Nutex Health 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 Nutex Health i.e., Nutex Health and Babylon Holdings go up and down completely randomly.
Pair Corralation between Nutex Health and Babylon Holdings
Given the investment horizon of 90 days Nutex Health is expected to generate 0.44 times more return on investment than Babylon Holdings. However, Nutex Health is 2.29 times less risky than Babylon Holdings. It trades about -0.03 of its potential returns per unit of risk. Babylon Holdings is currently generating about -0.13 per unit of risk. If you would invest 35,400 in Nutex Health on August 29, 2024 and sell it today you would lose (31,708) from holding Nutex Health or give up 89.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 31.25% |
| Values | Daily Returns |
Nutex Health vs. Babylon Holdings
Performance |
| Timeline |
| Nutex Health |
| Babylon Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Nutex Health and Babylon Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nutex Health and Babylon Holdings
The main advantage of trading using opposite Nutex Health and Babylon Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nutex Health 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.| Nutex Health vs. FOXO Technologies | Nutex Health vs. Heartbeam | Nutex Health vs. EUDA Health Holdings | Nutex Health vs. Privia Health Group |
| 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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