Correlation Between Avinger and Encision
Can any of the company-specific risk be diversified away by investing in both Avinger and Encision 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 Avinger and Encision into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Avinger and Encision, you can compare the effects of market volatilities on Avinger and Encision 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 Avinger with a short position of Encision. Check out your portfolio center. Please also check ongoing floating volatility patterns of Avinger and Encision.
Diversification Opportunities for Avinger and Encision
Very good diversification
The 3 months correlation between Avinger and Encision is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Avinger and Encision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Encision and Avinger 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 Avinger are associated (or correlated) with Encision. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Encision has no effect on the direction of Avinger i.e., Avinger and Encision go up and down completely randomly.
Pair Corralation between Avinger and Encision
If you would invest 44.00 in Encision on August 28, 2024 and sell it today you would earn a total of 0.00 from holding Encision or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Avinger vs. Encision
Performance |
| Timeline |
| Avinger |
| Encision |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Avinger and Encision Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Avinger and Encision
The main advantage of trading using opposite Avinger and Encision positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Avinger position performs unexpectedly, Encision 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 Encision will offset losses from the drop in Encision's long position.| Avinger vs. GlucoTrack | Avinger vs. Nexgel Inc | Avinger vs. Sharps Technology | Avinger vs. Innovative Eyewear |
| Encision vs. Procyon | Encision vs. Environmmtl Tectonic | Encision vs. SCI Engineered Materials | Encision vs. Electronic Control Security |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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