Correlation Between Brainsway and Epitomee Medical
Can any of the company-specific risk be diversified away by investing in both Brainsway and Epitomee 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 Brainsway and Epitomee Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brainsway and Epitomee Medical, you can compare the effects of market volatilities on Brainsway and Epitomee 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 Brainsway with a short position of Epitomee Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brainsway and Epitomee Medical.
Diversification Opportunities for Brainsway and Epitomee Medical
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Brainsway and Epitomee is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Brainsway and Epitomee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epitomee Medical and Brainsway 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 Brainsway are associated (or correlated) with Epitomee Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epitomee Medical has no effect on the direction of Brainsway i.e., Brainsway and Epitomee Medical go up and down completely randomly.
Pair Corralation between Brainsway and Epitomee Medical
Assuming the 90 days trading horizon Brainsway is expected to generate 9.73 times less return on investment than Epitomee Medical. But when comparing it to its historical volatility, Brainsway is 13.05 times less risky than Epitomee Medical. It trades about 0.19 of its potential returns per unit of risk. Epitomee Medical is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 33,250 in Epitomee Medical on August 29, 2024 and sell it today you would earn a total of 59,670 from holding Epitomee Medical or generate 179.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brainsway vs. Epitomee Medical
Performance |
| Timeline |
| Brainsway |
| Epitomee Medical |
Brainsway and Epitomee Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brainsway and Epitomee Medical
The main advantage of trading using opposite Brainsway and Epitomee Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brainsway position performs unexpectedly, Epitomee 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 Epitomee Medical will offset losses from the drop in Epitomee Medical's long position.| Brainsway vs. Brainsway | Brainsway vs. Kamada | Brainsway vs. Foresight Autonomous Holdings | Brainsway vs. Compugen |
| Epitomee Medical vs. Sofwave Medical | Epitomee Medical vs. Bio View | Epitomee Medical vs. Insuline Medical |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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