Correlation Between Eventide Healthcare and Osterweis Strategic
Can any of the company-specific risk be diversified away by investing in both Eventide Healthcare and Osterweis Strategic 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 Osterweis Strategic 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 Osterweis Strategic Investment, you can compare the effects of market volatilities on Eventide Healthcare and Osterweis Strategic 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 Osterweis Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eventide Healthcare and Osterweis Strategic.
Diversification Opportunities for Eventide Healthcare and Osterweis Strategic
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Eventide and OSTERWEIS is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Eventide Healthcare Life and Osterweis Strategic Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Osterweis Strategic 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 Osterweis Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Osterweis Strategic has no effect on the direction of Eventide Healthcare i.e., Eventide Healthcare and Osterweis Strategic go up and down completely randomly.
Pair Corralation between Eventide Healthcare and Osterweis Strategic
Assuming the 90 days horizon Eventide Healthcare Life is expected to generate 2.88 times more return on investment than Osterweis Strategic. However, Eventide Healthcare is 2.88 times more volatile than Osterweis Strategic Investment. It trades about 0.22 of its potential returns per unit of risk. Osterweis Strategic Investment is currently generating about 0.28 per unit of risk. If you would invest 3,272 in Eventide Healthcare Life on November 3, 2024 and sell it today you would earn a total of 202.00 from holding Eventide Healthcare Life or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eventide Healthcare Life vs. Osterweis Strategic Investment
Performance |
| Timeline |
| Eventide Healthcare Life |
| Osterweis Strategic |
Eventide Healthcare and Osterweis Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eventide Healthcare and Osterweis Strategic
The main advantage of trading using opposite Eventide Healthcare and Osterweis Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eventide Healthcare position performs unexpectedly, Osterweis Strategic 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 Osterweis Strategic will offset losses from the drop in Osterweis Strategic's long position.| Eventide Healthcare vs. Morningstar Defensive Bond | Eventide Healthcare vs. Ab Global Bond | Eventide Healthcare vs. Old Westbury California | Eventide Healthcare vs. Barings High Yield |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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