Correlation Between Electrocore LLC and Hyperfine
Can any of the company-specific risk be diversified away by investing in both Electrocore LLC and Hyperfine 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 Hyperfine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrocore LLC and Hyperfine, you can compare the effects of market volatilities on Electrocore LLC and Hyperfine 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 Hyperfine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrocore LLC and Hyperfine.
Diversification Opportunities for Electrocore LLC and Hyperfine
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Electrocore and Hyperfine is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Electrocore LLC and Hyperfine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyperfine 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 Hyperfine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyperfine has no effect on the direction of Electrocore LLC i.e., Electrocore LLC and Hyperfine go up and down completely randomly.
Pair Corralation between Electrocore LLC and Hyperfine
Given the investment horizon of 90 days Electrocore LLC is expected to generate 0.98 times more return on investment than Hyperfine. However, Electrocore LLC is 1.02 times less risky than Hyperfine. It trades about 0.12 of its potential returns per unit of risk. Hyperfine is currently generating about 0.01 per unit of risk. If you would invest 556.00 in Electrocore LLC on September 12, 2024 and sell it today you would earn a total of 894.00 from holding Electrocore LLC or generate 160.79% 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. Hyperfine
Performance |
| Timeline |
| Electrocore LLC |
| Hyperfine |
Electrocore LLC and Hyperfine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Electrocore LLC and Hyperfine
The main advantage of trading using opposite Electrocore LLC and Hyperfine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrocore LLC position performs unexpectedly, Hyperfine 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 Hyperfine will offset losses from the drop in Hyperfine's long position.| Electrocore LLC vs. STRATA Skin Sciences | Electrocore LLC vs. Sight Sciences | Electrocore LLC vs. Neuropace | Electrocore LLC vs. IRIDEX |
| Hyperfine vs. Neuropace | Hyperfine vs. Orthopediatrics Corp | Hyperfine vs. Anika Therapeutics | Hyperfine vs. PAVmed Inc |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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