Correlation Between Akso Health and Electrocore LLC
Can any of the company-specific risk be diversified away by investing in both Akso Health and Electrocore LLC 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 Akso Health and Electrocore LLC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Akso Health Group and Electrocore LLC, you can compare the effects of market volatilities on Akso Health and Electrocore LLC 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 Akso Health with a short position of Electrocore LLC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akso Health and Electrocore LLC.
Diversification Opportunities for Akso Health and Electrocore LLC
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Akso and Electrocore is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Akso Health Group and Electrocore LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrocore LLC and Akso Health 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 Akso Health Group are associated (or correlated) with Electrocore LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrocore LLC has no effect on the direction of Akso Health i.e., Akso Health and Electrocore LLC go up and down completely randomly.
Pair Corralation between Akso Health and Electrocore LLC
Considering the 90-day investment horizon Akso Health Group is expected to under-perform the Electrocore LLC. In addition to that, Akso Health is 2.95 times more volatile than Electrocore LLC. It trades about -0.18 of its total potential returns per unit of risk. Electrocore LLC is currently generating about -0.1 per unit of volatility. If you would invest 612.00 in Electrocore LLC on February 1, 2024 and sell it today you would lose (42.00) from holding Electrocore LLC or give up 6.86% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Akso Health Group vs. Electrocore LLC
Performance |
Timeline |
Akso Health Group |
Electrocore LLC |
Akso Health and Electrocore LLC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Akso Health and Electrocore LLC
The main advantage of trading using opposite Akso Health and Electrocore LLC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akso Health position performs unexpectedly, Electrocore LLC 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 Electrocore LLC will offset losses from the drop in Electrocore LLC's long position.Akso Health vs. Novo Integrated Sciences | Akso Health vs. HCA Holdings | Akso Health vs. Acadia Healthcare | Akso Health vs. Pennant Group |
Electrocore LLC vs. Novo Integrated Sciences | Electrocore LLC vs. HCA Holdings | Electrocore LLC vs. Acadia Healthcare | Electrocore LLC vs. Pennant Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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