Correlation Between Astrana Health and Eltek
Can any of the company-specific risk be diversified away by investing in both Astrana Health and Eltek 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 Astrana Health and Eltek into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Astrana Health and Eltek, you can compare the effects of market volatilities on Astrana Health and Eltek 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 Astrana Health with a short position of Eltek. Check out your portfolio center. Please also check ongoing floating volatility patterns of Astrana Health and Eltek.
Diversification Opportunities for Astrana Health and Eltek
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Astrana and Eltek is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Astrana Health and Eltek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eltek and Astrana 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 Astrana Health are associated (or correlated) with Eltek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eltek has no effect on the direction of Astrana Health i.e., Astrana Health and Eltek go up and down completely randomly.
Pair Corralation between Astrana Health and Eltek
Given the investment horizon of 90 days Astrana Health is expected to under-perform the Eltek. But the stock apears to be less risky and, when comparing its historical volatility, Astrana Health is 1.77 times less risky than Eltek. The stock trades about -0.57 of its potential returns per unit of risk. The Eltek is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,092 in Eltek on September 26, 2024 and sell it today you would earn a total of 8.00 from holding Eltek or generate 0.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Astrana Health vs. Eltek
Performance |
Timeline |
Astrana Health |
Eltek |
Astrana Health and Eltek Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Astrana Health and Eltek
The main advantage of trading using opposite Astrana Health and Eltek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Astrana Health position performs unexpectedly, Eltek 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 Eltek will offset losses from the drop in Eltek's long position.Astrana Health vs. EvoAir Holdings | Astrana Health vs. Pentair PLC | Astrana Health vs. Morgan Stanley | Astrana Health vs. Papaya Growth Opportunity |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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