Correlation Between Singular Health and Global Health
Can any of the company-specific risk be diversified away by investing in both Singular Health and Global 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 Global 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 Global Health, you can compare the effects of market volatilities on Singular Health and Global 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 Global Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Singular Health and Global Health.
Diversification Opportunities for Singular Health and Global Health
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Singular and Global is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Singular Health Group and Global Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Global Health 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 Global Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Global Health has no effect on the direction of Singular Health i.e., Singular Health and Global Health go up and down completely randomly.
Pair Corralation between Singular Health and Global Health
Assuming the 90 days trading horizon Singular Health Group is expected to generate 2.47 times more return on investment than Global Health. However, Singular Health is 2.47 times more volatile than Global Health. It trades about 0.06 of its potential returns per unit of risk. Global Health is currently generating about 0.01 per unit of risk. If you would invest 25.00 in Singular Health Group on November 27, 2024 and sell it today you would earn a total of 1.00 from holding Singular Health Group or generate 4.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Singular Health Group vs. Global Health
Performance |
| Timeline |
| Singular Health Group |
| Global Health |
Singular Health and Global Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Singular Health and Global Health
The main advantage of trading using opposite Singular Health and Global Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Singular Health position performs unexpectedly, Global 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 Global Health will offset losses from the drop in Global Health's long position.| Singular Health vs. Andean Silver Limited | Singular Health vs. M3 Mining | Singular Health vs. Kkr Credit Income | Singular Health vs. Galena Mining |
| Global Health vs. Mach7 Technologies | Global Health vs. Macquarie Technology Group | Global Health vs. Ainsworth Game Technology | Global Health vs. Qbe Insurance 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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