Correlation Between Electrocore LLC and Amedisys
Can any of the company-specific risk be diversified away by investing in both Electrocore LLC and Amedisys 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 Amedisys into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrocore LLC and Amedisys, you can compare the effects of market volatilities on Electrocore LLC and Amedisys 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 Amedisys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrocore LLC and Amedisys.
Diversification Opportunities for Electrocore LLC and Amedisys
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Electrocore and Amedisys is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Electrocore LLC and Amedisys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amedisys 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 Amedisys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amedisys has no effect on the direction of Electrocore LLC i.e., Electrocore LLC and Amedisys go up and down completely randomly.
Pair Corralation between Electrocore LLC and Amedisys
Given the investment horizon of 90 days Electrocore LLC is expected to generate 5.23 times more return on investment than Amedisys. However, Electrocore LLC is 5.23 times more volatile than Amedisys. It trades about 0.08 of its potential returns per unit of risk. Amedisys is currently generating about -0.02 per unit of risk. If you would invest 583.00 in Electrocore LLC on August 24, 2024 and sell it today you would earn a total of 409.00 from holding Electrocore LLC or generate 70.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrocore LLC vs. Amedisys
Performance |
| Timeline |
| Electrocore LLC |
| Amedisys |
Electrocore LLC and Amedisys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrocore LLC and Amedisys
The main advantage of trading using opposite Electrocore LLC and Amedisys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrocore LLC position performs unexpectedly, Amedisys 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 Amedisys will offset losses from the drop in Amedisys' long position.| Electrocore LLC vs. STRATA Skin Sciences | Electrocore LLC vs. Sight Sciences | Electrocore LLC vs. Neuropace | Electrocore LLC vs. IRIDEX |
| Amedisys vs. The Ensign Group | Amedisys vs. Universal Health Services | Amedisys vs. Encompass Health Corp | Amedisys vs. Surgery Partners |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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