Correlation Between Blueberries Medical and Entourage Health
Can any of the company-specific risk be diversified away by investing in both Blueberries Medical and Entourage 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 Blueberries Medical and Entourage Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Blueberries Medical Corp and Entourage Health Corp, you can compare the effects of market volatilities on Blueberries Medical and Entourage 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 Blueberries Medical with a short position of Entourage Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Blueberries Medical and Entourage Health.
Diversification Opportunities for Blueberries Medical and Entourage Health
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Blueberries and Entourage is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Blueberries Medical Corp and Entourage Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entourage Health Corp and Blueberries Medical 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 Blueberries Medical Corp are associated (or correlated) with Entourage Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entourage Health Corp has no effect on the direction of Blueberries Medical i.e., Blueberries Medical and Entourage Health go up and down completely randomly.
Pair Corralation between Blueberries Medical and Entourage Health
Assuming the 90 days horizon Blueberries Medical is expected to generate 2.12 times less return on investment than Entourage Health. But when comparing it to its historical volatility, Blueberries Medical Corp is 1.35 times less risky than Entourage Health. It trades about 0.04 of its potential returns per unit of risk. Entourage Health Corp is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 0.89 in Entourage Health Corp on November 5, 2024 and sell it today you would lose (0.44) from holding Entourage Health Corp or give up 49.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Blueberries Medical Corp vs. Entourage Health Corp
Performance |
| Timeline |
| Blueberries Medical Corp |
| Entourage Health Corp |
Blueberries Medical and Entourage Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Blueberries Medical and Entourage Health
The main advantage of trading using opposite Blueberries Medical and Entourage Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Blueberries Medical position performs unexpectedly, Entourage 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 Entourage Health will offset losses from the drop in Entourage Health's long position.| Blueberries Medical vs. Speakeasy Cannabis Club | Blueberries Medical vs. City View Green | Blueberries Medical vs. Benchmark Botanics | Blueberries Medical vs. BC Craft Supply |
| Entourage Health vs. Benchmark Botanics | Entourage Health vs. Speakeasy Cannabis Club | Entourage Health vs. City View Green | Entourage Health vs. BC Craft Supply |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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