Correlation Between Asker Healthcare and Unibap AB

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

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

Diversification Opportunities for Asker Healthcare and Unibap AB

0.8

Correlation Coefficient

Asker Healthcare  Unibap AB

Very poor diversification

The 3 months correlation between Asker and Unibap is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Asker Healthcare and Unibap AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Unibap AB and Asker Healthcare 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 Asker Healthcare are associated (or correlated) with Unibap AB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Unibap AB has no effect on the direction of Asker Healthcare i.e., Asker Healthcare and Unibap AB go up and down completely randomly.

Pair Corralation between Asker Healthcare and Unibap AB

Assuming the 90 days trading horizon Asker Healthcare is expected to generate 1.05 times more return on investment than Unibap AB. However, Asker Healthcare is 1.05 times more volatile than Unibap AB. It trades about 0.06 of its potential returns per unit of risk. Unibap AB is currently generating about 0.05 per unit of risk. If you would invest  12,374  in Asker Healthcare on April 22, 2025 and sell it today you would earn a total of  374.00  from holding Asker Healthcare or generate 3.02% return on investment over 90 days.

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

Asker Healthcare  vs.  Unibap AB

Asker Healthcare

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Asker Healthcare are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Asker Healthcare unveiled solid returns over the last few months and may actually be approaching a breakup point.

Unibap AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Unibap AB are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat uncertain forward indicators, Unibap AB sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Asker Healthcare and Unibap AB

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

The idea behind Asker Healthcare and Unibap AB 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.