Correlation Between Sixty Six and Alibaba Health
Can any of the company-specific risk be diversified away by investing in both Sixty Six and Alibaba 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 Sixty Six and Alibaba Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sixty Six Oilfield and Alibaba Health Information, you can compare the effects of market volatilities on Sixty Six and Alibaba 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 Sixty Six with a short position of Alibaba Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sixty Six and Alibaba Health.
Diversification Opportunities for Sixty Six and Alibaba Health
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Sixty and Alibaba is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Sixty Six Oilfield and Alibaba Health Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alibaba Health Infor and Sixty Six 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 Sixty Six Oilfield are associated (or correlated) with Alibaba Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alibaba Health Infor has no effect on the direction of Sixty Six i.e., Sixty Six and Alibaba Health go up and down completely randomly.
Pair Corralation between Sixty Six and Alibaba Health
Given the investment horizon of 90 days Sixty Six Oilfield is expected to generate 2.64 times more return on investment than Alibaba Health. However, Sixty Six is 2.64 times more volatile than Alibaba Health Information. It trades about 0.07 of its potential returns per unit of risk. Alibaba Health Information is currently generating about -0.1 per unit of risk. If you would invest 0.01 in Sixty Six Oilfield on August 29, 2024 and sell it today you would earn a total of 0.00 from holding Sixty Six Oilfield or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sixty Six Oilfield vs. Alibaba Health Information
Performance |
| Timeline |
| Sixty Six Oilfield |
| Alibaba Health Infor |
Sixty Six and Alibaba Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sixty Six and Alibaba Health
The main advantage of trading using opposite Sixty Six and Alibaba Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sixty Six position performs unexpectedly, Alibaba 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 Alibaba Health will offset losses from the drop in Alibaba Health's long position.| Sixty Six vs. Expro Group Holdings | Sixty Six vs. ChampionX | Sixty Six vs. Ranger Energy Services | Sixty Six vs. Cactus Inc |
| Alibaba Health vs. Indo Global Exchange | Alibaba Health vs. TPT Global Tech | Alibaba Health vs. Valiant Eagle | Alibaba Health vs. Sixty Six Oilfield |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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