Correlation Between Beyond Air and Ontrak
Can any of the company-specific risk be diversified away by investing in both Beyond Air and Ontrak 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 Beyond Air and Ontrak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Beyond Air and Ontrak Inc, you can compare the effects of market volatilities on Beyond Air and Ontrak 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 Beyond Air with a short position of Ontrak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beyond Air and Ontrak.
Diversification Opportunities for Beyond Air and Ontrak
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Beyond and Ontrak is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Beyond Air and Ontrak Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ontrak Inc and Beyond Air 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 Beyond Air are associated (or correlated) with Ontrak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ontrak Inc has no effect on the direction of Beyond Air i.e., Beyond Air and Ontrak go up and down completely randomly.
Pair Corralation between Beyond Air and Ontrak
Given the investment horizon of 90 days Beyond Air is expected to generate 1.23 times more return on investment than Ontrak. However, Beyond Air is 1.23 times more volatile than Ontrak Inc. It trades about -0.03 of its potential returns per unit of risk. Ontrak Inc is currently generating about -0.06 per unit of risk. If you would invest 119.00 in Beyond Air on September 2, 2024 and sell it today you would lose (67.00) from holding Beyond Air or give up 56.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beyond Air vs. Ontrak Inc
Performance |
| Timeline |
| Beyond Air |
| Ontrak Inc |
Beyond Air and Ontrak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beyond Air and Ontrak
The main advantage of trading using opposite Beyond Air and Ontrak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beyond Air position performs unexpectedly, Ontrak 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 Ontrak will offset losses from the drop in Ontrak's long position.| Beyond Air vs. Lucid Diagnostics | Beyond Air vs. Inari Medical | Beyond Air vs. PAVmed Series Z | Beyond Air vs. Clearpoint Neuro |
| Ontrak vs. American Well Corp | Ontrak vs. Root Inc | Ontrak vs. Goodrx Holdings | Ontrak vs. Bigcommerce Holdings |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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