Correlation Between Profound Medical and Akso Health
Can any of the company-specific risk be diversified away by investing in both Profound Medical and Akso 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 Profound Medical and Akso Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Profound Medical Corp and Akso Health Group, you can compare the effects of market volatilities on Profound Medical and Akso 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 Profound Medical with a short position of Akso Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Profound Medical and Akso Health.
Diversification Opportunities for Profound Medical and Akso Health
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Profound and Akso is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Profound Medical Corp and Akso Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akso Health Group and Profound Medical 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 Profound Medical Corp are associated (or correlated) with Akso Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akso Health Group has no effect on the direction of Profound Medical i.e., Profound Medical and Akso Health go up and down completely randomly.
Pair Corralation between Profound Medical and Akso Health
Given the investment horizon of 90 days Profound Medical Corp is expected to generate 0.37 times more return on investment than Akso Health. However, Profound Medical Corp is 2.72 times less risky than Akso Health. It trades about 0.14 of its potential returns per unit of risk. Akso Health Group is currently generating about -0.03 per unit of risk. If you would invest 727.00 in Profound Medical Corp on September 1, 2024 and sell it today you would earn a total of 85.00 from holding Profound Medical Corp or generate 11.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Profound Medical Corp vs. Akso Health Group
Performance |
| Timeline |
| Profound Medical Corp |
| Akso Health Group |
Profound Medical and Akso Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Profound Medical and Akso Health
The main advantage of trading using opposite Profound Medical and Akso Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Profound Medical position performs unexpectedly, Akso 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 Akso Health will offset losses from the drop in Akso Health's long position.| Profound Medical vs. Si Bone | Profound Medical vs. Sight Sciences | Profound Medical vs. Nevro Corp | Profound Medical vs. Paragon 28 |
| Akso Health vs. Profound Medical Corp | Akso Health vs. Si Bone | Akso Health vs. Nevro Corp | Akso Health vs. Paragon 28 |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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