Correlation Between EUDA Health and Alcon AG
Can any of the company-specific risk be diversified away by investing in both EUDA Health and Alcon AG 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 EUDA Health and Alcon AG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EUDA Health Holdings and Alcon AG, you can compare the effects of market volatilities on EUDA Health and Alcon AG 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 EUDA Health with a short position of Alcon AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of EUDA Health and Alcon AG.
Diversification Opportunities for EUDA Health and Alcon AG
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EUDA and Alcon is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding EUDA Health Holdings and Alcon AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Alcon AG and EUDA Health 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 EUDA Health Holdings are associated (or correlated) with Alcon AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Alcon AG has no effect on the direction of EUDA Health i.e., EUDA Health and Alcon AG go up and down completely randomly.
Pair Corralation between EUDA Health and Alcon AG
Given the investment horizon of 90 days EUDA Health Holdings is expected to generate 4.61 times more return on investment than Alcon AG. However, EUDA Health is 4.61 times more volatile than Alcon AG. It trades about 0.08 of its potential returns per unit of risk. Alcon AG is currently generating about 0.04 per unit of risk. If you would invest 143.00 in EUDA Health Holdings on August 31, 2024 and sell it today you would earn a total of 289.00 from holding EUDA Health Holdings or generate 202.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EUDA Health Holdings vs. Alcon AG
Performance |
| Timeline |
| EUDA Health Holdings |
| Alcon AG |
EUDA Health and Alcon AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EUDA Health and Alcon AG
The main advantage of trading using opposite EUDA Health and Alcon AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EUDA Health position performs unexpectedly, Alcon AG 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 Alcon AG will offset losses from the drop in Alcon AG's long position.| EUDA Health vs. Healthcare Triangle | EUDA Health vs. Bullfrog AI Holdings, | EUDA Health vs. Mangoceuticals, Common Stock | EUDA Health vs. FOXO Technologies |
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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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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