Correlation Between Butterfly Network and Avricore Health
Can any of the company-specific risk be diversified away by investing in both Butterfly Network and Avricore 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 Butterfly Network and Avricore Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Butterfly Network and Avricore Health, you can compare the effects of market volatilities on Butterfly Network and Avricore 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 Butterfly Network with a short position of Avricore Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Butterfly Network and Avricore Health.
Diversification Opportunities for Butterfly Network and Avricore Health
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Butterfly and Avricore is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Butterfly Network and Avricore Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avricore Health and Butterfly Network 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 Butterfly Network are associated (or correlated) with Avricore Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avricore Health has no effect on the direction of Butterfly Network i.e., Butterfly Network and Avricore Health go up and down completely randomly.
Pair Corralation between Butterfly Network and Avricore Health
Given the investment horizon of 90 days Butterfly Network is expected to generate 0.34 times more return on investment than Avricore Health. However, Butterfly Network is 2.97 times less risky than Avricore Health. It trades about 0.26 of its potential returns per unit of risk. Avricore Health is currently generating about 0.06 per unit of risk. If you would invest 266.00 in Butterfly Network on September 14, 2024 and sell it today you would earn a total of 88.00 from holding Butterfly Network or generate 33.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Butterfly Network vs. Avricore Health
Performance |
| Timeline |
| Butterfly Network |
| Avricore Health |
Butterfly Network and Avricore Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Butterfly Network and Avricore Health
The main advantage of trading using opposite Butterfly Network and Avricore Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Butterfly Network position performs unexpectedly, Avricore 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 Avricore Health will offset losses from the drop in Avricore Health's long position.| Butterfly Network vs. Inari Medical | Butterfly Network vs. Masimo | Butterfly Network vs. Glaukos Corp | Butterfly Network vs. Inspire Medical Systems |
| Avricore Health vs. Neuronetics | Avricore Health vs. Intelligent Bio Solutions | Avricore Health vs. Biodesix | Avricore Health vs. Precipio |
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.
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