Correlation Between Abingdon Health and Monks Investment
Can any of the company-specific risk be diversified away by investing in both Abingdon Health and Monks Investment 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 Abingdon Health and Monks Investment into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Abingdon Health Plc and Monks Investment Trust, you can compare the effects of market volatilities on Abingdon Health and Monks Investment 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 Abingdon Health with a short position of Monks Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Abingdon Health and Monks Investment.
Diversification Opportunities for Abingdon Health and Monks Investment
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Abingdon and Monks is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Abingdon Health Plc and Monks Investment Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Monks Investment Trust and Abingdon 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 Abingdon Health Plc are associated (or correlated) with Monks Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Monks Investment Trust has no effect on the direction of Abingdon Health i.e., Abingdon Health and Monks Investment go up and down completely randomly.
Pair Corralation between Abingdon Health and Monks Investment
Assuming the 90 days trading horizon Abingdon Health Plc is expected to generate 3.93 times more return on investment than Monks Investment. However, Abingdon Health is 3.93 times more volatile than Monks Investment Trust. It trades about 0.09 of its potential returns per unit of risk. Monks Investment Trust is currently generating about 0.03 per unit of risk. If you would invest 575.00 in Abingdon Health Plc on September 11, 2025 and sell it today you would earn a total of 100.00 from holding Abingdon Health Plc or generate 17.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Abingdon Health Plc vs. Monks Investment Trust
Performance |
| Timeline |
| Abingdon Health Plc |
| Monks Investment Trust |
Abingdon Health and Monks Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Abingdon Health and Monks Investment
The main advantage of trading using opposite Abingdon Health and Monks Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Abingdon Health position performs unexpectedly, Monks Investment 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 Monks Investment will offset losses from the drop in Monks Investment's long position.| Abingdon Health vs. Samsung Electronics Co | Abingdon Health vs. Samsung Electronics Co | Abingdon Health vs. Samsung Electronics Co | Abingdon Health vs. Toyota Motor Corp |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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