Correlation Between Zynex and Akso Health

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

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

Diversification Opportunities for Zynex and Akso Health

0.66

Correlation Coefficient

Zynex  Akso Health

Poor diversification

The 3 months correlation between Zynex and Akso is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Zynex Inc and Akso Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akso Health Group and Zynex 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 Zynex Inc are associated (or correlated) with Akso Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akso Health Group has no effect on the direction of Zynex i.e., Zynex and Akso Health go up and down completely randomly.

Pair Corralation between Zynex and Akso Health

Given the investment horizon of 90 days Zynex Inc is expected to under-perform the Akso Health. In addition to that, Zynex is 1.67 times more volatile than Akso Health Group. It trades about -0.21 of its total potential returns per unit of risk. Akso Health Group is currently generating about -0.1 per unit of volatility. If you would invest  130.00  in Akso Health Group on January 13, 2025 and sell it today you would lose (39.00) from holding Akso Health Group or give up 30.0% of portfolio value over 90 days.

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

Zynex Inc  vs.  Akso Health Group

Zynex Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Zynex Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in May 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Akso Health Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Akso Health Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in May 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Zynex and Akso Health

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

The idea behind Zynex Inc and Akso Health Group 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 Global Correlations module to find global opportunities by holding instruments from different markets.