Correlation Between Electrocore LLC and Cross Country
Can any of the company-specific risk be diversified away by investing in both Electrocore LLC and Cross Country 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 Cross Country into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrocore LLC and Cross Country Healthcare, you can compare the effects of market volatilities on Electrocore LLC and Cross Country 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 Cross Country. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrocore LLC and Cross Country.
Diversification Opportunities for Electrocore LLC and Cross Country
-0.86 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Electrocore and Cross is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Electrocore LLC and Cross Country Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cross Country Healthcare 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 Cross Country. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cross Country Healthcare has no effect on the direction of Electrocore LLC i.e., Electrocore LLC and Cross Country go up and down completely randomly.
Pair Corralation between Electrocore LLC and Cross Country
Given the investment horizon of 90 days Electrocore LLC is expected to generate 1.54 times more return on investment than Cross Country. However, Electrocore LLC is 1.54 times more volatile than Cross Country Healthcare. It trades about 0.05 of its potential returns per unit of risk. Cross Country Healthcare is currently generating about -0.06 per unit of risk. If you would invest 1,105 in Electrocore LLC on August 28, 2024 and sell it today you would earn a total of 30.00 from holding Electrocore LLC or generate 2.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Electrocore LLC vs. Cross Country Healthcare
Performance |
| Timeline |
| Electrocore LLC |
| Cross Country Healthcare |
Electrocore LLC and Cross Country Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrocore LLC and Cross Country
The main advantage of trading using opposite Electrocore LLC and Cross Country positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrocore LLC position performs unexpectedly, Cross Country 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 Cross Country will offset losses from the drop in Cross Country's long position.| Electrocore LLC vs. STRATA Skin Sciences | Electrocore LLC vs. Sight Sciences | Electrocore LLC vs. Neuropace | Electrocore LLC vs. IRIDEX |
| Cross Country vs. ASGN Inc | Cross Country vs. Kforce Inc | Cross Country vs. Kelly Services A | Cross Country vs. AMN Healthcare Services |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |