Correlation Between Spok Holdings and PreAxia Health
Can any of the company-specific risk be diversified away by investing in both Spok Holdings and PreAxia 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 Spok Holdings and PreAxia Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Spok Holdings and PreAxia Health Care, you can compare the effects of market volatilities on Spok Holdings and PreAxia 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 Spok Holdings with a short position of PreAxia Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Spok Holdings and PreAxia Health.
Diversification Opportunities for Spok Holdings and PreAxia Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Spok and PreAxia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Spok Holdings and PreAxia Health Care in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PreAxia Health Care and Spok Holdings 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 Spok Holdings are associated (or correlated) with PreAxia Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PreAxia Health Care has no effect on the direction of Spok Holdings i.e., Spok Holdings and PreAxia Health go up and down completely randomly.
Pair Corralation between Spok Holdings and PreAxia Health
If you would invest 1,581 in Spok Holdings on December 4, 2024 and sell it today you would earn a total of 104.00 from holding Spok Holdings or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Spok Holdings vs. PreAxia Health Care
Performance |
| Timeline |
| Spok Holdings |
| PreAxia Health Care |
Spok Holdings and PreAxia Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Spok Holdings and PreAxia Health
The main advantage of trading using opposite Spok Holdings and PreAxia Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Spok Holdings position performs unexpectedly, PreAxia 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 PreAxia Health will offset losses from the drop in PreAxia Health's long position.| Spok Holdings vs. Forian Inc | Spok Holdings vs. Streamline Health Solutions | Spok Holdings vs. National Research Corp | Spok Holdings vs. HealthEquity |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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