Correlation Between ChampionX and Evofem Biosciences
Can any of the company-specific risk be diversified away by investing in both ChampionX and Evofem Biosciences 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 ChampionX and Evofem Biosciences into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ChampionX and Evofem Biosciences, you can compare the effects of market volatilities on ChampionX and Evofem Biosciences 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 ChampionX with a short position of Evofem Biosciences. Check out your portfolio center. Please also check ongoing floating volatility patterns of ChampionX and Evofem Biosciences.
Diversification Opportunities for ChampionX and Evofem Biosciences
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between ChampionX and Evofem is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding ChampionX and Evofem Biosciences in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evofem Biosciences and ChampionX 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 ChampionX are associated (or correlated) with Evofem Biosciences. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evofem Biosciences has no effect on the direction of ChampionX i.e., ChampionX and Evofem Biosciences go up and down completely randomly.
Pair Corralation between ChampionX and Evofem Biosciences
Considering the 90-day investment horizon ChampionX is expected to generate 0.13 times more return on investment than Evofem Biosciences. However, ChampionX is 7.84 times less risky than Evofem Biosciences. It trades about 0.02 of its potential returns per unit of risk. Evofem Biosciences is currently generating about -0.09 per unit of risk. If you would invest 2,757 in ChampionX on September 12, 2024 and sell it today you would earn a total of 140.00 from holding ChampionX or generate 5.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.36% |
| Values | Daily Returns |
ChampionX vs. Evofem Biosciences
Performance |
| Timeline |
| ChampionX |
| Evofem Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
ChampionX and Evofem Biosciences Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ChampionX and Evofem Biosciences
The main advantage of trading using opposite ChampionX and Evofem Biosciences positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ChampionX position performs unexpectedly, Evofem Biosciences 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 Evofem Biosciences will offset losses from the drop in Evofem Biosciences' long position.| ChampionX vs. Schlumberger NV | ChampionX vs. Weatherford International PLC | ChampionX vs. Tenaris SA ADR | ChampionX vs. Halliburton |
| Evofem Biosciences vs. Infosys Ltd ADR | Evofem Biosciences vs. Paltalk | Evofem Biosciences vs. Datadog | Evofem Biosciences vs. ServiceNow |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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