Correlation Between Haoxi Health and Cardlytics

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

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

Diversification Opportunities for Haoxi Health and Cardlytics

-0.39

Correlation Coefficient

Haoxi Health  Cardlytics

Very good diversification

The 3 months correlation between Haoxi and Cardlytics is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Haoxi Health Technology and Cardlytics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cardlytics and Haoxi 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 Haoxi Health Technology are associated (or correlated) with Cardlytics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cardlytics has no effect on the direction of Haoxi Health i.e., Haoxi Health and Cardlytics go up and down completely randomly.

Pair Corralation between Haoxi Health and Cardlytics

Considering the 90-day investment horizon Haoxi Health Technology is expected to generate 1.15 times more return on investment than Cardlytics. However, Haoxi Health is 1.15 times more volatile than Cardlytics. It trades about 0.09 of its potential returns per unit of risk. Cardlytics is currently generating about 0.03 per unit of risk. If you would invest  528.00  in Haoxi Health Technology on February 15, 2024 and sell it today you would earn a total of  238.00  from holding Haoxi Health Technology or generate 45.08% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	15.56%
Values	Daily Returns

Haoxi Health Technology  vs.  Cardlytics

Haoxi Health Technology

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Haoxi Health Technology are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, Haoxi Health displayed solid returns over the last few months and may actually be approaching a breakup point.

Cardlytics

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cardlytics are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak essential indicators, Cardlytics showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Haoxi Health and Cardlytics

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

The idea behind Haoxi Health Technology and Cardlytics 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..