Correlation Between Turning Point and Astrana Health
Can any of the company-specific risk be diversified away by investing in both Turning Point and Astrana 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 Turning Point and Astrana Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Turning Point Brands and Astrana Health, you can compare the effects of market volatilities on Turning Point and Astrana 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 Turning Point with a short position of Astrana Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Turning Point and Astrana Health.
Diversification Opportunities for Turning Point and Astrana Health
-0.85 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Turning and Astrana is -0.85. Overlapping area represents the amount of risk that can be diversified away by holding Turning Point Brands and Astrana Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astrana Health and Turning Point 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 Turning Point Brands are associated (or correlated) with Astrana Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astrana Health has no effect on the direction of Turning Point i.e., Turning Point and Astrana Health go up and down completely randomly.
Pair Corralation between Turning Point and Astrana Health
Considering the 90-day investment horizon Turning Point Brands is expected to generate 0.68 times more return on investment than Astrana Health. However, Turning Point Brands is 1.46 times less risky than Astrana Health. It trades about 0.21 of its potential returns per unit of risk. Astrana Health is currently generating about 0.03 per unit of risk. If you would invest 2,435 in Turning Point Brands on September 12, 2024 and sell it today you would earn a total of 3,953 from holding Turning Point Brands or generate 162.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Turning Point Brands vs. Astrana Health
Performance |
| Timeline |
| Turning Point Brands |
| Astrana Health |
Turning Point and Astrana Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Turning Point and Astrana Health
The main advantage of trading using opposite Turning Point and Astrana Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Turning Point position performs unexpectedly, Astrana 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 Astrana Health will offset losses from the drop in Astrana Health's long position.| Turning Point vs. Universal | Turning Point vs. Imperial Brands PLC | Turning Point vs. British American Tobacco | Turning Point vs. Philip Morris International |
| Astrana Health vs. Fresenius Medical Care | Astrana Health vs. Regional Health Properties | Astrana Health vs. Oncology Institute | Astrana Health vs. Guardian Pharmacy Services, |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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