Correlation Between Eventide Healthcare and Great West
Can any of the company-specific risk be diversified away by investing in both Eventide Healthcare and Great West 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 Great West 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 Great West E Strategies, you can compare the effects of market volatilities on Eventide Healthcare and Great West 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 Great West. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eventide Healthcare and Great West.
Diversification Opportunities for Eventide Healthcare and Great West
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eventide and Great is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Eventide Healthcare Life and Great West E Strategies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Great West E 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 Great West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Great West E has no effect on the direction of Eventide Healthcare i.e., Eventide Healthcare and Great West go up and down completely randomly.
Pair Corralation between Eventide Healthcare and Great West
Assuming the 90 days horizon Eventide Healthcare is expected to generate 1.42 times less return on investment than Great West. In addition to that, Eventide Healthcare is 1.93 times more volatile than Great West E Strategies. It trades about 0.02 of its total potential returns per unit of risk. Great West E Strategies is currently generating about 0.05 per unit of volatility. If you would invest 898.00 in Great West E Strategies on September 12, 2024 and sell it today you would earn a total of 83.00 from holding Great West E Strategies or generate 9.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eventide Healthcare Life vs. Great West E Strategies
Performance |
| Timeline |
| Eventide Healthcare Life |
| Great West E |
Eventide Healthcare and Great West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eventide Healthcare and Great West
The main advantage of trading using opposite Eventide Healthcare and Great West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eventide Healthcare position performs unexpectedly, Great West 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 Great West will offset losses from the drop in Great West'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 |
| Great West vs. Tekla Healthcare Opportunities | Great West vs. Eventide Healthcare Life | Great West vs. Invesco Global Health | Great West vs. Allianzgi 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |