Correlation Between Alignment Healthcare and Minim

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

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

Diversification Opportunities for Alignment Healthcare and Minim

-0.7

Correlation Coefficient

Alignment Healthcare  Minim

Excellent diversification

The 3 months correlation between Alignment and Minim is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding Alignment Healthcare LLC and Minim Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minim Inc and Alignment 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 Alignment Healthcare LLC are associated (or correlated) with Minim. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minim Inc has no effect on the direction of Alignment Healthcare i.e., Alignment Healthcare and Minim go up and down completely randomly.

Pair Corralation between Alignment Healthcare and Minim

Given the investment horizon of 90 days Alignment Healthcare LLC is expected to under-perform the Minim. But the stock apears to be less risky and, when comparing its historical volatility, Alignment Healthcare LLC is 8.14 times less risky than Minim. The stock trades about -0.18 of its potential returns per unit of risk. The Minim Inc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  93.00  in Minim Inc on April 20, 2025 and sell it today you would earn a total of  238.00  from holding Minim Inc or generate 255.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	88.71%
Values	Daily Returns

Alignment Healthcare LLC  vs.  Minim Inc

Alignment Healthcare LLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Alignment Healthcare LLC has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for the firm shareholders.

Minim Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Minim Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain basic indicators, Minim displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Alignment Healthcare and Minim

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

The idea behind Alignment Healthcare LLC and Minim Inc 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.