Correlation Between Peel Mining and Singular Health
Can any of the company-specific risk be diversified away by investing in both Peel Mining and Singular Health 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 Peel Mining and Singular Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peel Mining and Singular Health Group, you can compare the effects of market volatilities on Peel Mining and Singular Health 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 Peel Mining with a short position of Singular Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peel Mining and Singular Health.
Diversification Opportunities for Peel Mining and Singular Health
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Peel and Singular is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Peel Mining and Singular Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Singular Health Group and Peel Mining 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 Peel Mining are associated (or correlated) with Singular Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Singular Health Group has no effect on the direction of Peel Mining i.e., Peel Mining and Singular Health go up and down completely randomly.
Pair Corralation between Peel Mining and Singular Health
Assuming the 90 days trading horizon Peel Mining is expected to under-perform the Singular Health. But the stock apears to be less risky and, when comparing its historical volatility, Peel Mining is 2.27 times less risky than Singular Health. The stock trades about -0.11 of its potential returns per unit of risk. The Singular Health Group is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 9.00 in Singular Health Group on September 1, 2024 and sell it today you would earn a total of 2.00 from holding Singular Health Group or generate 22.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Peel Mining vs. Singular Health Group
Performance |
| Timeline |
| Peel Mining |
| Singular Health Group |
Peel Mining and Singular Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peel Mining and Singular Health
The main advantage of trading using opposite Peel Mining and Singular Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peel Mining position performs unexpectedly, Singular Health 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 Singular Health will offset losses from the drop in Singular Health's long position.| Peel Mining vs. Autosports Group | Peel Mining vs. Pioneer Credit | Peel Mining vs. Treasury Wine Estates | Peel Mining vs. Westpac Banking |
| Singular Health vs. Kkr Credit Income | Singular Health vs. Aussie Broadband | Singular Health vs. Lendlease Group | Singular Health vs. Prime Financial Group |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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