Correlation Between BTC Health and EMvision Medical
Can any of the company-specific risk be diversified away by investing in both BTC Health and EMvision Medical 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 BTC Health and EMvision Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTC Health Limited and EMvision Medical Devices, you can compare the effects of market volatilities on BTC Health and EMvision Medical 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 BTC Health with a short position of EMvision Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTC Health and EMvision Medical.
Diversification Opportunities for BTC Health and EMvision Medical
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BTC and EMvision is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding BTC Health Limited and EMvision Medical Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EMvision Medical Devices and BTC Health 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 BTC Health Limited are associated (or correlated) with EMvision Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EMvision Medical Devices has no effect on the direction of BTC Health i.e., BTC Health and EMvision Medical go up and down completely randomly.
Pair Corralation between BTC Health and EMvision Medical
Assuming the 90 days trading horizon BTC Health Limited is expected to under-perform the EMvision Medical. In addition to that, BTC Health is 1.39 times more volatile than EMvision Medical Devices. It trades about -0.14 of its total potential returns per unit of risk. EMvision Medical Devices is currently generating about 0.04 per unit of volatility. If you would invest 193.00 in EMvision Medical Devices on August 30, 2024 and sell it today you would earn a total of 3.00 from holding EMvision Medical Devices or generate 1.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
BTC Health Limited vs. EMvision Medical Devices
Performance |
| Timeline |
| BTC Health Limited |
| EMvision Medical Devices |
BTC Health and EMvision Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTC Health and EMvision Medical
The main advantage of trading using opposite BTC Health and EMvision Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTC Health position performs unexpectedly, EMvision Medical 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 EMvision Medical will offset losses from the drop in EMvision Medical's long position.| BTC Health vs. Tombador Iron | BTC Health vs. COAST ENTERTAINMENT HOLDINGS | BTC Health vs. Autosports Group | BTC Health vs. Ironbark Capital |
| EMvision Medical vs. Aneka Tambang Tbk | EMvision Medical vs. Macquarie Group | EMvision Medical vs. Macquarie Group Ltd | EMvision Medical vs. Challenger |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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