Correlation Between Akso Health and Centogene

Can any of the company-specific risk be diversified away by investing in both Akso Health and Centogene 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 Centogene 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 Centogene B V, you can compare the effects of market volatilities on Akso Health and Centogene 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 Centogene. Check out your portfolio center. Please also check ongoing floating volatility patterns of Akso Health and Centogene.

Diversification Opportunities for Akso Health and Centogene

0.65

Correlation Coefficient

Akso Health  Centogene

Poor diversification

The 3 months correlation between Akso and Centogene is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Akso Health Group and Centogene B V in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centogene B V 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 Centogene. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centogene B V has no effect on the direction of Akso Health i.e., Akso Health and Centogene go up and down completely randomly.

Pair Corralation between Akso Health and Centogene

Considering the 90-day investment horizon Akso Health is expected to generate 1.43 times less return on investment than Centogene. But when comparing it to its historical volatility, Akso Health Group is 1.52 times less risky than Centogene. It trades about 0.06 of its potential returns per unit of risk. Centogene B V is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  12.00  in Centogene B V on September 12, 2024 and sell it today you would lose (2.00) from holding Centogene B V or give up 16.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Akso Health Group  vs.  Centogene B V

Akso Health Group

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Akso Health Group are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical indicators, Akso Health may actually be approaching a critical reversion point that can send shares even higher in January 2025.

Centogene B V

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Centogene B V are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly inconsistent basic indicators, Centogene reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Akso Health and Centogene

The main advantage of trading using opposite Akso Health and Centogene positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akso Health position performs unexpectedly, Centogene 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 Centogene will offset losses from the drop in Centogene's long position.

The idea behind Akso Health Group and Centogene B V pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.