Correlation Between Eventide Healthcare and Federated High
Can any of the company-specific risk be diversified away by investing in both Eventide Healthcare and Federated High 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 Eventide Healthcare and Federated High into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eventide Healthcare Life and Federated High Yield, you can compare the effects of market volatilities on Eventide Healthcare and Federated High 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 Eventide Healthcare with a short position of Federated High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eventide Healthcare and Federated High.
Diversification Opportunities for Eventide Healthcare and Federated High
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between EVENTIDE and Federated is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Eventide Healthcare Life and Federated High Yield in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated High Yield and Eventide Healthcare 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 Eventide Healthcare Life are associated (or correlated) with Federated High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated High Yield has no effect on the direction of Eventide Healthcare i.e., Eventide Healthcare and Federated High go up and down completely randomly.
Pair Corralation between Eventide Healthcare and Federated High
Assuming the 90 days horizon Eventide Healthcare is expected to generate 1.13 times less return on investment than Federated High. In addition to that, Eventide Healthcare is 7.95 times more volatile than Federated High Yield. It trades about 0.02 of its total potential returns per unit of risk. Federated High Yield is currently generating about 0.17 per unit of volatility. If you would invest 634.00 in Federated High Yield on September 3, 2024 and sell it today you would earn a total of 12.00 from holding Federated High Yield or generate 1.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eventide Healthcare Life vs. Federated High Yield
Performance |
| Timeline |
| Eventide Healthcare Life |
| Federated High Yield |
Eventide Healthcare and Federated High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eventide Healthcare and Federated High
The main advantage of trading using opposite Eventide Healthcare and Federated High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eventide Healthcare position performs unexpectedly, Federated High 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 Federated High will offset losses from the drop in Federated High's long position.| Eventide Healthcare vs. Vanguard Health Care | Eventide Healthcare vs. Vanguard Health Care | Eventide Healthcare vs. T Rowe Price | Eventide Healthcare vs. T Rowe Price |
| Federated High vs. Eventide Healthcare Life | Federated High vs. Health Biotchnology Portfolio | Federated High vs. Alphacentric Lifesci Healthcare | Federated High vs. Blackrock Health Sciences |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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