Correlation Between Epitomee Medical and Intercure
Can any of the company-specific risk be diversified away by investing in both Epitomee Medical and Intercure 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 Epitomee Medical and Intercure into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Epitomee Medical and Intercure, you can compare the effects of market volatilities on Epitomee Medical and Intercure 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 Epitomee Medical with a short position of Intercure. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epitomee Medical and Intercure.
Diversification Opportunities for Epitomee Medical and Intercure
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Epitomee and Intercure is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Epitomee Medical and Intercure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercure and Epitomee 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 Epitomee Medical are associated (or correlated) with Intercure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intercure has no effect on the direction of Epitomee Medical i.e., Epitomee Medical and Intercure go up and down completely randomly.
Pair Corralation between Epitomee Medical and Intercure
Assuming the 90 days trading horizon Epitomee Medical is expected to under-perform the Intercure. But the stock apears to be less risky and, when comparing its historical volatility, Epitomee Medical is 1.42 times less risky than Intercure. The stock trades about -0.23 of its potential returns per unit of risk. The Intercure is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 62,910 in Intercure on October 23, 2024 and sell it today you would lose (1,410) from holding Intercure or give up 2.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
Epitomee Medical vs. Intercure
Performance |
| Timeline |
| Epitomee Medical |
| Intercure |
Epitomee Medical and Intercure Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epitomee Medical and Intercure
The main advantage of trading using opposite Epitomee Medical and Intercure positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epitomee Medical position performs unexpectedly, Intercure 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 Intercure will offset losses from the drop in Intercure's long position.| Epitomee Medical vs. Intercure | Epitomee Medical vs. Sofwave Medical | Epitomee Medical vs. Bio View | Epitomee Medical vs. Elbit Imaging |
| Intercure vs. Together Startup Network | Intercure vs. Delek Group | Intercure vs. Teva Pharmaceutical Industries | Intercure vs. El Al Israel |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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