Correlation Between Prime Financial and Singular Health
Can any of the company-specific risk be diversified away by investing in both Prime Financial 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 Prime Financial and Singular Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Prime Financial Group and Singular Health Group, you can compare the effects of market volatilities on Prime Financial 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 Prime Financial with a short position of Singular Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Prime Financial and Singular Health.
Diversification Opportunities for Prime Financial and Singular Health
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Prime and Singular is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Prime Financial Group 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 Prime Financial 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 Prime Financial Group 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 Prime Financial i.e., Prime Financial and Singular Health go up and down completely randomly.
Pair Corralation between Prime Financial and Singular Health
Assuming the 90 days trading horizon Prime Financial is expected to generate 14.21 times less return on investment than Singular Health. But when comparing it to its historical volatility, Prime Financial Group is 1.52 times less risky than Singular Health. It trades about 0.01 of its potential returns per unit of risk. Singular Health Group is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 8.00 in Singular Health Group on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Singular Health Group or generate 37.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Prime Financial Group vs. Singular Health Group
Performance |
| Timeline |
| Prime Financial Group |
| Singular Health Group |
Prime Financial and Singular Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Prime Financial and Singular Health
The main advantage of trading using opposite Prime Financial and Singular Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Prime Financial 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.| Prime Financial vs. Audio Pixels Holdings | Prime Financial vs. Iodm | Prime Financial vs. Nsx | Prime Financial vs. TTG Fintech |
| Singular Health vs. TTG Fintech | Singular Health vs. Land Homes Group | Singular Health vs. Regis Healthcare | Singular Health vs. Horseshoe Metals |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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