Correlation Between EUDA Health and Neogen
Can any of the company-specific risk be diversified away by investing in both EUDA Health and Neogen 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 Neogen 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 Neogen, you can compare the effects of market volatilities on EUDA Health and Neogen 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 Neogen. Check out your portfolio center. Please also check ongoing floating volatility patterns of EUDA Health and Neogen.
Diversification Opportunities for EUDA Health and Neogen
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EUDA and Neogen is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding EUDA Health Holdings and Neogen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neogen 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 Neogen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neogen has no effect on the direction of EUDA Health i.e., EUDA Health and Neogen go up and down completely randomly.
Pair Corralation between EUDA Health and Neogen
Given the investment horizon of 90 days EUDA Health Holdings is expected to under-perform the Neogen. In addition to that, EUDA Health is 1.6 times more volatile than Neogen. It trades about -0.05 of its total potential returns per unit of risk. Neogen is currently generating about 0.02 per unit of volatility. If you would invest 1,405 in Neogen on August 29, 2024 and sell it today you would earn a total of 9.00 from holding Neogen or generate 0.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EUDA Health Holdings vs. Neogen
Performance |
| Timeline |
| EUDA Health Holdings |
| Neogen |
EUDA Health and Neogen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EUDA Health and Neogen
The main advantage of trading using opposite EUDA Health and Neogen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EUDA Health position performs unexpectedly, Neogen 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 Neogen will offset losses from the drop in Neogen'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 |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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