Correlation Between EMvision Medical and Akora Resources
Can any of the company-specific risk be diversified away by investing in both EMvision Medical and Akora Resources 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 EMvision Medical and Akora Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMvision Medical Devices and Akora Resources, you can compare the effects of market volatilities on EMvision Medical and Akora Resources 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 EMvision Medical with a short position of Akora Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMvision Medical and Akora Resources.
Diversification Opportunities for EMvision Medical and Akora Resources
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between EMvision and Akora is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding EMvision Medical Devices and Akora Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Akora Resources and EMvision Medical 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 EMvision Medical Devices are associated (or correlated) with Akora Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Akora Resources has no effect on the direction of EMvision Medical i.e., EMvision Medical and Akora Resources go up and down completely randomly.
Pair Corralation between EMvision Medical and Akora Resources
Assuming the 90 days trading horizon EMvision Medical Devices is expected to generate 0.8 times more return on investment than Akora Resources. However, EMvision Medical Devices is 1.24 times less risky than Akora Resources. It trades about -0.05 of its potential returns per unit of risk. Akora Resources is currently generating about -0.09 per unit of risk. If you would invest 203.00 in EMvision Medical Devices on September 13, 2024 and sell it today you would lose (14.00) from holding EMvision Medical Devices or give up 6.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EMvision Medical Devices vs. Akora Resources
Performance |
| Timeline |
| EMvision Medical Devices |
| Akora Resources |
EMvision Medical and Akora Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMvision Medical and Akora Resources
The main advantage of trading using opposite EMvision Medical and Akora Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMvision Medical position performs unexpectedly, Akora Resources 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 Akora Resources will offset losses from the drop in Akora Resources' long position.| EMvision Medical vs. WiseTech Global Limited | EMvision Medical vs. Thorney Technologies | EMvision Medical vs. Hansen Technologies | EMvision Medical vs. Environmental Clean Technologies |
| Akora Resources vs. Home Consortium | Akora Resources vs. IDP Education | Akora Resources vs. Queste Communications | Akora Resources vs. Tombador Iron |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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