Correlation Between Graham and Abingdon Health

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Can any of the company-specific risk be diversified away by investing in both Graham and Abingdon Health 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 Graham and Abingdon Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Graham and Abingdon Health Plc, you can compare the effects of market volatilities on Graham and Abingdon Health 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 Graham with a short position of Abingdon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Graham and Abingdon Health.

Diversification Opportunities for Graham and Abingdon Health

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Graham and Abingdon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Graham and Abingdon Health Plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Abingdon Health Plc and Graham 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 Graham are associated (or correlated) with Abingdon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abingdon Health Plc has no effect on the direction of Graham i.e., Graham and Abingdon Health go up and down completely randomly.

Pair Corralation between Graham and Abingdon Health

If you would invest  4,798  in Graham on September 1, 2025 and sell it today you would earn a total of  952.00  from holding Graham or generate 19.84% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy98.46%
ValuesDaily Returns

Graham  vs.  Abingdon Health Plc

 Performance 
       Timeline  
Graham 

Risk-Adjusted Performance

Fair

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Graham are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile technical indicators, Graham displayed solid returns over the last few months and may actually be approaching a breakup point.
Abingdon Health Plc 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Abingdon Health Plc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Abingdon Health is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Graham and Abingdon Health Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Graham and Abingdon Health

The main advantage of trading using opposite Graham and Abingdon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Graham position performs unexpectedly, Abingdon Health 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 Abingdon Health will offset losses from the drop in Abingdon Health's long position.
The idea behind Graham and Abingdon Health Plc 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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