Correlation Between Electrocore LLC and Evolus
Can any of the company-specific risk be diversified away by investing in both Electrocore LLC and Evolus 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 Evolus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrocore LLC and Evolus Inc, you can compare the effects of market volatilities on Electrocore LLC and Evolus 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 Evolus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrocore LLC and Evolus.
Diversification Opportunities for Electrocore LLC and Evolus
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Electrocore and Evolus is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Electrocore LLC and Evolus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolus Inc 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 Evolus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolus Inc has no effect on the direction of Electrocore LLC i.e., Electrocore LLC and Evolus go up and down completely randomly.
Pair Corralation between Electrocore LLC and Evolus
Given the investment horizon of 90 days Electrocore LLC is expected to generate 1.62 times more return on investment than Evolus. However, Electrocore LLC is 1.62 times more volatile than Evolus Inc. It trades about 0.07 of its potential returns per unit of risk. Evolus Inc is currently generating about -0.19 per unit of risk. If you would invest 1,153 in Electrocore LLC on September 2, 2024 and sell it today you would earn a total of 67.00 from holding Electrocore LLC or generate 5.81% 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. Evolus Inc
Performance |
| Timeline |
| Electrocore LLC |
| Evolus Inc |
Electrocore LLC and Evolus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrocore LLC and Evolus
The main advantage of trading using opposite Electrocore LLC and Evolus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrocore LLC position performs unexpectedly, Evolus 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 Evolus will offset losses from the drop in Evolus' long position.| Electrocore LLC vs. STRATA Skin Sciences | Electrocore LLC vs. Sight Sciences | Electrocore LLC vs. Neuropace | Electrocore LLC vs. IRIDEX |
| Evolus vs. Crinetics Pharmaceuticals | Evolus vs. Enanta Pharmaceuticals | Evolus vs. Amicus Therapeutics | Evolus vs. Connect Biopharma Holdings |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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