Correlation Between Akso Health and Align Technology

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

Diversification Opportunities for Akso Health and Align Technology

-0.67
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Akso and Align is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Akso Health Group and Align Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Align Technology 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 Align Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Align Technology has no effect on the direction of Akso Health i.e., Akso Health and Align Technology go up and down completely randomly.

Pair Corralation between Akso Health and Align Technology

Considering the 90-day investment horizon Akso Health Group is expected to under-perform the Align Technology. In addition to that, Akso Health is 2.24 times more volatile than Align Technology. It trades about -0.08 of its total potential returns per unit of risk. Align Technology is currently generating about 0.18 per unit of volatility. If you would invest  13,156  in Align Technology on September 12, 2025 and sell it today you would earn a total of  3,302  from holding Align Technology or generate 25.1% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Akso Health Group  vs.  Align Technology

 Performance 
       Timeline  
Akso Health Group 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Akso Health Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long-run up-swing for the company stockholders.
Align Technology 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Align Technology are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating technical and fundamental indicators, Align Technology displayed solid returns over the last few months and may actually be approaching a breakup point.

Akso Health and Align Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Akso Health and Align Technology

The main advantage of trading using opposite Akso Health and Align Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Akso Health position performs unexpectedly, Align Technology 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 Align Technology will offset losses from the drop in Align Technology's long position.
The idea behind Akso Health Group and Align Technology 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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.

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