Correlation Between EGF Theramed and Privia Health
Can any of the company-specific risk be diversified away by investing in both EGF Theramed and Privia Health 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 Privia Health 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 Privia Health Group, you can compare the effects of market volatilities on EGF Theramed and Privia Health 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 Privia Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGF Theramed and Privia Health.
Diversification Opportunities for EGF Theramed and Privia Health
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EGF and Privia is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding EGF Theramed Health and Privia Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Privia Health Group 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 Privia Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Privia Health Group has no effect on the direction of EGF Theramed i.e., EGF Theramed and Privia Health go up and down completely randomly.
Pair Corralation between EGF Theramed and Privia Health
Assuming the 90 days horizon EGF Theramed Health is expected to generate 11.72 times more return on investment than Privia Health. However, EGF Theramed is 11.72 times more volatile than Privia Health Group. It trades about 0.06 of its potential returns per unit of risk. Privia Health Group is currently generating about 0.01 per unit of risk. If you would invest 36.00 in EGF Theramed Health on August 30, 2024 and sell it today you would lose (15.00) from holding EGF Theramed Health or give up 41.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.8% |
| Values | Daily Returns |
EGF Theramed Health vs. Privia Health Group
Performance |
| Timeline |
| EGF Theramed Health |
| Privia Health Group |
EGF Theramed and Privia Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGF Theramed and Privia Health
The main advantage of trading using opposite EGF Theramed and Privia Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGF Theramed position performs unexpectedly, Privia Health 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 Privia Health will offset losses from the drop in Privia Health's long position.| EGF Theramed vs. Healthcare Triangle | EGF Theramed vs. Bullfrog AI Holdings, | EGF Theramed vs. Mednow Inc | EGF Theramed vs. Caduceus Software Systems |
| Privia Health vs. Certara | Privia Health vs. HealthStream | Privia Health vs. National Research Corp | Privia Health vs. HealthEquity |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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