Correlation Between Social Leverage and China Health
Can any of the company-specific risk be diversified away by investing in both Social Leverage and China 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 Social Leverage and China Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Social Leverage Acquisition and China Health Management, you can compare the effects of market volatilities on Social Leverage and China 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 Social Leverage with a short position of China Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Social Leverage and China Health.
Diversification Opportunities for Social Leverage and China Health
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Social and China is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Social Leverage Acquisition and China Health Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Health Management and Social Leverage 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 Social Leverage Acquisition are associated (or correlated) with China Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Health Management has no effect on the direction of Social Leverage i.e., Social Leverage and China Health go up and down completely randomly.
Pair Corralation between Social Leverage and China Health
If you would invest 0.50 in China Health Management on August 26, 2024 and sell it today you would earn a total of 0.11 from holding China Health Management or generate 22.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 0.3% |
| Values | Daily Returns |
Social Leverage Acquisition vs. China Health Management
Performance |
| Timeline |
| Social Leverage Acqu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Health Management |
Social Leverage and China Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Social Leverage and China Health
The main advantage of trading using opposite Social Leverage and China Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Social Leverage position performs unexpectedly, China 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 China Health will offset losses from the drop in China Health's long position.The idea behind Social Leverage Acquisition and China Health Management pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| China Health vs. Boxlight Corp Class | China Health vs. Siyata Mobile | China Health vs. ClearOne | China Health vs. HUMANA 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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