Correlation Between Seraphim Space and Abingdon Health
Can any of the company-specific risk be diversified away by investing in both Seraphim Space and Abingdon 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 Seraphim Space and Abingdon Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Seraphim Space Investment and Abingdon Health Plc, you can compare the effects of market volatilities on Seraphim Space and Abingdon 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 Seraphim Space with a short position of Abingdon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Seraphim Space and Abingdon Health.
Diversification Opportunities for Seraphim Space and Abingdon Health
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Seraphim and Abingdon is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Seraphim Space Investment and Abingdon Health Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abingdon Health Plc and Seraphim Space 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 Seraphim Space Investment are associated (or correlated) with Abingdon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abingdon Health Plc has no effect on the direction of Seraphim Space i.e., Seraphim Space and Abingdon Health go up and down completely randomly.
Pair Corralation between Seraphim Space and Abingdon Health
Assuming the 90 days trading horizon Seraphim Space Investment is expected to under-perform the Abingdon Health. But the stock apears to be less risky and, when comparing its historical volatility, Seraphim Space Investment is 1.02 times less risky than Abingdon Health. The stock trades about -0.14 of its potential returns per unit of risk. The Abingdon Health Plc is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 725.00 in Abingdon Health Plc on October 16, 2024 and sell it today you would earn a total of 75.00 from holding Abingdon Health Plc or generate 10.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Seraphim Space Investment vs. Abingdon Health Plc
Performance |
| Timeline |
| Seraphim Space Investment |
| Abingdon Health Plc |
Seraphim Space and Abingdon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Seraphim Space and Abingdon Health
The main advantage of trading using opposite Seraphim Space and Abingdon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Seraphim Space position performs unexpectedly, Abingdon 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 Abingdon Health will offset losses from the drop in Abingdon Health's long position.| Seraphim Space vs. Capital Metals PLC | Seraphim Space vs. McEwen Mining | Seraphim Space vs. Westlake Chemical Corp | Seraphim Space vs. Air Products Chemicals |
| Abingdon Health vs. TBC Bank Group | Abingdon Health vs. Livermore Investments Group | Abingdon Health vs. Mobius Investment Trust | Abingdon Health vs. Seraphim Space Investment |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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