Correlation Between Willamette Valley and Astrana Health
Can any of the company-specific risk be diversified away by investing in both Willamette Valley 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 Willamette Valley and Astrana Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Willamette Valley Vineyards and Astrana Health, you can compare the effects of market volatilities on Willamette Valley 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 Willamette Valley with a short position of Astrana Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Willamette Valley and Astrana Health.
Diversification Opportunities for Willamette Valley and Astrana Health
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Willamette and Astrana is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Willamette Valley Vineyards and Astrana Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astrana Health and Willamette Valley 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 Willamette Valley Vineyards 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 Willamette Valley i.e., Willamette Valley and Astrana Health go up and down completely randomly.
Pair Corralation between Willamette Valley and Astrana Health
Given the investment horizon of 90 days Willamette Valley Vineyards is expected to under-perform the Astrana Health. But the stock apears to be less risky and, when comparing its historical volatility, Willamette Valley Vineyards is 1.6 times less risky than Astrana Health. The stock trades about -0.06 of its potential returns per unit of risk. The Astrana Health is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 3,079 in Astrana Health on September 12, 2024 and sell it today you would earn a total of 852.00 from holding Astrana Health or generate 27.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Willamette Valley Vineyards vs. Astrana Health
Performance |
| Timeline |
| Willamette Valley |
| Astrana Health |
Willamette Valley and Astrana Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Willamette Valley and Astrana Health
The main advantage of trading using opposite Willamette Valley and Astrana Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Willamette Valley 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.| Willamette Valley vs. Andrew Peller Limited | Willamette Valley vs. Naked Wines plc | Willamette Valley vs. Willamette Valley Vineyards | Willamette Valley vs. Splash Beverage Group |
| 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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