Correlation Between Eventide Healthcare and James Alpha
Can any of the company-specific risk be diversified away by investing in both Eventide Healthcare and James Alpha 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 James Alpha 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 James Alpha Managed, you can compare the effects of market volatilities on Eventide Healthcare and James Alpha 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 James Alpha. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eventide Healthcare and James Alpha.
Diversification Opportunities for Eventide Healthcare and James Alpha
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eventide and James is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Eventide Healthcare Life and James Alpha Managed in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on James Alpha Managed 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 James Alpha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of James Alpha Managed has no effect on the direction of Eventide Healthcare i.e., Eventide Healthcare and James Alpha go up and down completely randomly.
Pair Corralation between Eventide Healthcare and James Alpha
Assuming the 90 days horizon Eventide Healthcare Life is expected to under-perform the James Alpha. In addition to that, Eventide Healthcare is 5.33 times more volatile than James Alpha Managed. It trades about -0.11 of its total potential returns per unit of risk. James Alpha Managed is currently generating about 0.12 per unit of volatility. If you would invest 1,280 in James Alpha Managed on September 12, 2024 and sell it today you would earn a total of 11.00 from holding James Alpha Managed or generate 0.86% 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. James Alpha Managed
Performance |
| Timeline |
| Eventide Healthcare Life |
| James Alpha Managed |
Eventide Healthcare and James Alpha Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eventide Healthcare and James Alpha
The main advantage of trading using opposite Eventide Healthcare and James Alpha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eventide Healthcare position performs unexpectedly, James Alpha 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 James Alpha will offset losses from the drop in James Alpha's long position.| Eventide Healthcare vs. Angel Oak Financial | Eventide Healthcare vs. Royce Global Financial | Eventide Healthcare vs. 1919 Financial Services | Eventide Healthcare vs. John Hancock Financial |
| James Alpha vs. SCOR PK | James Alpha vs. Morningstar Unconstrained Allocation | James Alpha vs. Thrivent High Yield | James Alpha vs. Via Renewables |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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