Correlation Between Electrocore LLC and Accolade
Can any of the company-specific risk be diversified away by investing in both Electrocore LLC and Accolade 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 Electrocore LLC and Accolade into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrocore LLC and Accolade, you can compare the effects of market volatilities on Electrocore LLC and Accolade 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 Electrocore LLC with a short position of Accolade. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrocore LLC and Accolade.
Diversification Opportunities for Electrocore LLC and Accolade
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Electrocore and Accolade is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Electrocore LLC and Accolade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accolade and Electrocore LLC 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 Electrocore LLC are associated (or correlated) with Accolade. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accolade has no effect on the direction of Electrocore LLC i.e., Electrocore LLC and Accolade go up and down completely randomly.
Pair Corralation between Electrocore LLC and Accolade
Given the investment horizon of 90 days Electrocore LLC is expected to generate 2.51 times less return on investment than Accolade. In addition to that, Electrocore LLC is 2.29 times more volatile than Accolade. It trades about 0.04 of its total potential returns per unit of risk. Accolade is currently generating about 0.23 per unit of volatility. If you would invest 320.00 in Accolade on August 24, 2024 and sell it today you would earn a total of 51.00 from holding Accolade or generate 15.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrocore LLC vs. Accolade
Performance |
| Timeline |
| Electrocore LLC |
| Accolade |
Electrocore LLC and Accolade Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrocore LLC and Accolade
The main advantage of trading using opposite Electrocore LLC and Accolade positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrocore LLC position performs unexpectedly, Accolade 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 Accolade will offset losses from the drop in Accolade's long position.| Electrocore LLC vs. STRATA Skin Sciences | Electrocore LLC vs. Sight Sciences | Electrocore LLC vs. Neuropace | Electrocore LLC vs. IRIDEX |
| Accolade vs. Privia Health Group | Accolade vs. HealthStream | Accolade vs. National Research Corp | Accolade vs. Health Catalyst |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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