Correlation Between Emergent Health and Yoma Strategic
Can any of the company-specific risk be diversified away by investing in both Emergent Health and Yoma Strategic 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 Emergent Health and Yoma Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emergent Health Corp and Yoma Strategic Holdings, you can compare the effects of market volatilities on Emergent Health and Yoma Strategic 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 Emergent Health with a short position of Yoma Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emergent Health and Yoma Strategic.
Diversification Opportunities for Emergent Health and Yoma Strategic
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Emergent and Yoma is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Emergent Health Corp and Yoma Strategic Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yoma Strategic Holdings and Emergent Health 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 Emergent Health Corp are associated (or correlated) with Yoma Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yoma Strategic Holdings has no effect on the direction of Emergent Health i.e., Emergent Health and Yoma Strategic go up and down completely randomly.
Pair Corralation between Emergent Health and Yoma Strategic
Given the investment horizon of 90 days Emergent Health Corp is expected to generate 2.41 times more return on investment than Yoma Strategic. However, Emergent Health is 2.41 times more volatile than Yoma Strategic Holdings. It trades about -0.06 of its potential returns per unit of risk. Yoma Strategic Holdings is currently generating about -0.22 per unit of risk. If you would invest 0.10 in Emergent Health Corp on September 25, 2024 and sell it today you would lose (0.02) from holding Emergent Health Corp or give up 20.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emergent Health Corp vs. Yoma Strategic Holdings
Performance |
| Timeline |
| Emergent Health Corp |
| Yoma Strategic Holdings |
Emergent Health and Yoma Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emergent Health and Yoma Strategic
The main advantage of trading using opposite Emergent Health and Yoma Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emergent Health position performs unexpectedly, Yoma Strategic 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 Yoma Strategic will offset losses from the drop in Yoma Strategic's long position.| Emergent Health vs. Galexxy Holdings | Emergent Health vs. Integrated Cannabis Solutions | Emergent Health vs. Golden Developing Solutions | Emergent Health vs. Premier Biomedical |
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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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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