Correlation Between EDAP TMS and DocGo
Can any of the company-specific risk be diversified away by investing in both EDAP TMS and DocGo 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 EDAP TMS and DocGo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EDAP TMS SA and DocGo Inc, you can compare the effects of market volatilities on EDAP TMS and DocGo 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 EDAP TMS with a short position of DocGo. Check out your portfolio center. Please also check ongoing floating volatility patterns of EDAP TMS and DocGo.
Diversification Opportunities for EDAP TMS and DocGo
Very good diversification
The 3 months correlation between EDAP and DocGo is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding EDAP TMS SA and DocGo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DocGo Inc and EDAP TMS 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 EDAP TMS SA are associated (or correlated) with DocGo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DocGo Inc has no effect on the direction of EDAP TMS i.e., EDAP TMS and DocGo go up and down completely randomly.
Pair Corralation between EDAP TMS and DocGo
Given the investment horizon of 90 days EDAP TMS SA is expected to under-perform the DocGo. In addition to that, EDAP TMS is 1.4 times more volatile than DocGo Inc. It trades about -0.29 of its total potential returns per unit of risk. DocGo Inc is currently generating about 0.03 per unit of volatility. If you would invest 416.00 in DocGo Inc on September 13, 2024 and sell it today you would earn a total of 3.50 from holding DocGo Inc or generate 0.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EDAP TMS SA vs. DocGo Inc
Performance |
| Timeline |
| EDAP TMS SA |
| DocGo Inc |
EDAP TMS and DocGo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EDAP TMS and DocGo
The main advantage of trading using opposite EDAP TMS and DocGo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EDAP TMS position performs unexpectedly, DocGo 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 DocGo will offset losses from the drop in DocGo's long position.| EDAP TMS vs. Patterson Companies | EDAP TMS vs. Henry Schein | EDAP TMS vs. McKesson | EDAP TMS vs. Cardinal Health |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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