Correlation Between Singular Health and BTC Health
Can any of the company-specific risk be diversified away by investing in both Singular Health and BTC 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 Singular Health and BTC Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Singular Health Group and BTC Health Limited, you can compare the effects of market volatilities on Singular Health and BTC 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 Singular Health with a short position of BTC Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singular Health and BTC Health.
Diversification Opportunities for Singular Health and BTC Health
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Singular and BTC is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Singular Health Group and BTC Health Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTC Health Limited and Singular 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 Singular Health Group are associated (or correlated) with BTC Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTC Health Limited has no effect on the direction of Singular Health i.e., Singular Health and BTC Health go up and down completely randomly.
Pair Corralation between Singular Health and BTC Health
Assuming the 90 days trading horizon Singular Health Group is expected to generate 1.29 times more return on investment than BTC Health. However, Singular Health is 1.29 times more volatile than BTC Health Limited. It trades about 0.26 of its potential returns per unit of risk. BTC Health Limited is currently generating about -0.11 per unit of risk. If you would invest 8.00 in Singular Health Group on August 25, 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 | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Singular Health Group vs. BTC Health Limited
Performance |
| Timeline |
| Singular Health Group |
| BTC Health Limited |
Singular Health and BTC Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singular Health and BTC Health
The main advantage of trading using opposite Singular Health and BTC Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singular Health position performs unexpectedly, BTC 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 BTC Health will offset losses from the drop in BTC Health's long position.| Singular Health vs. BTC Health Limited | Singular Health vs. Centaurus Metals | Singular Health vs. Perseus Mining | Singular Health vs. Ramsay Health Care |
| BTC Health vs. Aneka Tambang Tbk | BTC Health vs. Rio Tinto | BTC Health vs. BHP Group Limited | BTC Health vs. Block 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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