Correlation Between Easywell Biomedicals and Apex Biotechnology
Can any of the company-specific risk be diversified away by investing in both Easywell Biomedicals and Apex Biotechnology 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 Easywell Biomedicals and Apex Biotechnology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Easywell Biomedicals and Apex Biotechnology Corp, you can compare the effects of market volatilities on Easywell Biomedicals and Apex Biotechnology 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 Easywell Biomedicals with a short position of Apex Biotechnology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easywell Biomedicals and Apex Biotechnology.
Diversification Opportunities for Easywell Biomedicals and Apex Biotechnology
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Easywell and Apex is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Easywell Biomedicals and Apex Biotechnology Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apex Biotechnology Corp and Easywell Biomedicals 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 Easywell Biomedicals are associated (or correlated) with Apex Biotechnology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apex Biotechnology Corp has no effect on the direction of Easywell Biomedicals i.e., Easywell Biomedicals and Apex Biotechnology go up and down completely randomly.
Pair Corralation between Easywell Biomedicals and Apex Biotechnology
Assuming the 90 days trading horizon Easywell Biomedicals is expected to generate 2.11 times more return on investment than Apex Biotechnology. However, Easywell Biomedicals is 2.11 times more volatile than Apex Biotechnology Corp. It trades about 0.07 of its potential returns per unit of risk. Apex Biotechnology Corp is currently generating about 0.0 per unit of risk. If you would invest 4,006 in Easywell Biomedicals on September 2, 2024 and sell it today you would earn a total of 2,784 from holding Easywell Biomedicals or generate 69.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easywell Biomedicals vs. Apex Biotechnology Corp
Performance |
| Timeline |
| Easywell Biomedicals |
| Apex Biotechnology Corp |
Easywell Biomedicals and Apex Biotechnology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easywell Biomedicals and Apex Biotechnology
The main advantage of trading using opposite Easywell Biomedicals and Apex Biotechnology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easywell Biomedicals position performs unexpectedly, Apex Biotechnology 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 Apex Biotechnology will offset losses from the drop in Apex Biotechnology's long position.| Easywell Biomedicals vs. Universal Vision Biotechnology | Easywell Biomedicals vs. Excelsior Medical Co | Easywell Biomedicals vs. Hi Clearance | Easywell Biomedicals vs. Brighten Optix |
| Apex Biotechnology vs. Taiwan Semiconductor Manufacturing | Apex Biotechnology vs. Hon Hai Precision | Apex Biotechnology vs. MediaTek | Apex Biotechnology vs. Chunghwa Telecom Co |
Check out your portfolio center.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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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