Correlation Between Essilor International and Wearable Health
Can any of the company-specific risk be diversified away by investing in both Essilor International and Wearable Health 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 Essilor International and Wearable Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Essilor International SA and Wearable Health Solutions, you can compare the effects of market volatilities on Essilor International and Wearable Health 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 Essilor International with a short position of Wearable Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Essilor International and Wearable Health.
Diversification Opportunities for Essilor International and Wearable Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Essilor and Wearable is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Essilor International SA and Wearable Health Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wearable Health Solutions and Essilor International 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 Essilor International SA are associated (or correlated) with Wearable Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wearable Health Solutions has no effect on the direction of Essilor International i.e., Essilor International and Wearable Health go up and down completely randomly.
Pair Corralation between Essilor International and Wearable Health
If you would invest 11,689 in Essilor International SA on September 1, 2024 and sell it today you would earn a total of 445.00 from holding Essilor International SA or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Essilor International SA vs. Wearable Health Solutions
Performance |
| Timeline |
| Essilor International |
| Wearable Health Solutions |
Essilor International and Wearable Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Essilor International and Wearable Health
The main advantage of trading using opposite Essilor International and Wearable Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Essilor International position performs unexpectedly, Wearable Health 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 Wearable Health will offset losses from the drop in Wearable Health's long position.| Essilor International vs. Sysmex Corp | Essilor International vs. Straumann Holding AG | Essilor International vs. Coloplast AS | Essilor International vs. EssilorLuxottica Socit anonyme |
| Wearable Health vs. Sysmex Corp | Wearable Health vs. Coloplast AS | Wearable Health vs. Essilor International SA | Wearable Health vs. Coloplast A |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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