Correlation Between EGF Theramed and EWellness Healthcare
Can any of the company-specific risk be diversified away by investing in both EGF Theramed and EWellness Healthcare 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 EGF Theramed and EWellness Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EGF Theramed Health and eWellness Healthcare Corp, you can compare the effects of market volatilities on EGF Theramed and EWellness Healthcare 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 EGF Theramed with a short position of EWellness Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGF Theramed and EWellness Healthcare.
Diversification Opportunities for EGF Theramed and EWellness Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EGF and EWellness is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EGF Theramed Health and eWellness Healthcare Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eWellness Healthcare Corp and EGF Theramed 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 EGF Theramed Health are associated (or correlated) with EWellness Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eWellness Healthcare Corp has no effect on the direction of EGF Theramed i.e., EGF Theramed and EWellness Healthcare go up and down completely randomly.
Pair Corralation between EGF Theramed and EWellness Healthcare
If you would invest 5.70 in EGF Theramed Health on August 30, 2024 and sell it today you would earn a total of 15.30 from holding EGF Theramed Health or generate 268.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EGF Theramed Health vs. eWellness Healthcare Corp
Performance |
| Timeline |
| EGF Theramed Health |
| eWellness Healthcare Corp |
EGF Theramed and EWellness Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGF Theramed and EWellness Healthcare
The main advantage of trading using opposite EGF Theramed and EWellness Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGF Theramed position performs unexpectedly, EWellness Healthcare 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 EWellness Healthcare will offset losses from the drop in EWellness Healthcare's long position.| EGF Theramed vs. Reliq Health Technologies | EGF Theramed vs. Healthcare Triangle | EGF Theramed vs. Bullfrog AI Holdings, | EGF Theramed vs. Mednow Inc |
| EWellness Healthcare vs. Reliq Health Technologies | EWellness Healthcare vs. Healthcare Triangle | EWellness Healthcare vs. Bullfrog AI Holdings, | EWellness Healthcare vs. Mednow Inc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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