Correlation Between Babylon Holdings and EWellness Healthcare
Can any of the company-specific risk be diversified away by investing in both Babylon Holdings and EWellness Healthcare 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 Babylon Holdings and EWellness Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Babylon Holdings and eWellness Healthcare Corp, you can compare the effects of market volatilities on Babylon Holdings and EWellness Healthcare 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 Babylon Holdings with a short position of EWellness Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Babylon Holdings and EWellness Healthcare.
Diversification Opportunities for Babylon Holdings and EWellness Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Babylon and EWellness is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Babylon Holdings and eWellness Healthcare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eWellness Healthcare Corp and Babylon Holdings 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 Babylon Holdings are associated (or correlated) with EWellness Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eWellness Healthcare Corp has no effect on the direction of Babylon Holdings i.e., Babylon Holdings and EWellness Healthcare go up and down completely randomly.
Pair Corralation between Babylon Holdings and EWellness Healthcare
If you would invest 0.00 in eWellness Healthcare Corp on August 25, 2024 and sell it today you would earn a total of 0.00 from holding eWellness Healthcare Corp or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Babylon Holdings vs. eWellness Healthcare Corp
Performance |
| Timeline |
| Babylon Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| eWellness Healthcare Corp |
Babylon Holdings and EWellness Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Babylon Holdings and EWellness Healthcare
The main advantage of trading using opposite Babylon Holdings and EWellness Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Babylon Holdings position performs unexpectedly, EWellness Healthcare 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 EWellness Healthcare will offset losses from the drop in EWellness Healthcare's long position.| Babylon Holdings vs. FOXO Technologies | Babylon Holdings vs. Heartbeam | Babylon Holdings vs. EUDA Health Holdings | Babylon Holdings vs. Nutex Health |
| EWellness Healthcare vs. GE HealthCare Technologies | EWellness Healthcare vs. Veeva Systems Class | EWellness Healthcare vs. Solventum Corp | EWellness Healthcare vs. HealthEquity |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Stocks Directory Find actively traded stocks across global markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |