Correlation Between Advanced Health and Banzai International

Can any of the company-specific risk be diversified away by investing in both Advanced Health and Banzai International 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 Advanced Health and Banzai International into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Advanced Health Intelligence and Banzai International, you can compare the effects of market volatilities on Advanced Health and Banzai International 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 Advanced Health with a short position of Banzai International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Health and Banzai International.

Diversification Opportunities for Advanced Health and Banzai International

0.82

Correlation Coefficient

Advanced Health  Banzai International

Very poor diversification

The 3 months correlation between Advanced and Banzai is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Health Intelligence and Banzai International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Banzai International and Advanced 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 Advanced Health Intelligence are associated (or correlated) with Banzai International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Banzai International has no effect on the direction of Advanced Health i.e., Advanced Health and Banzai International go up and down completely randomly.

Pair Corralation between Advanced Health and Banzai International

Assuming the 90 days horizon Advanced Health Intelligence is expected to under-perform the Banzai International. But the otc stock apears to be less risky and, when comparing its historical volatility, Advanced Health Intelligence is 4.87 times less risky than Banzai International. The otc stock trades about -0.18 of its potential returns per unit of risk. The Banzai International is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  420.00  in Banzai International on September 22, 2024 and sell it today you would lose (249.00) from holding Banzai International or give up 59.29% of portfolio value over 90 days.

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

Advanced Health Intelligence  vs.  Banzai International

Advanced Health Inte

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Advanced Health Intelligence has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Banzai International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Banzai International has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Banzai International is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Advanced Health and Banzai International

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

The idea behind Advanced Health Intelligence and Banzai International 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.