Correlation Between Evofem Biosciences and Better Therapeutics
Can any of the company-specific risk be diversified away by investing in both Evofem Biosciences and Better Therapeutics 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 Evofem Biosciences and Better Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evofem Biosciences and Better Therapeutics, you can compare the effects of market volatilities on Evofem Biosciences and Better Therapeutics 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 Evofem Biosciences with a short position of Better Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evofem Biosciences and Better Therapeutics.
Diversification Opportunities for Evofem Biosciences and Better Therapeutics
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evofem and Better is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Evofem Biosciences and Better Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Better Therapeutics and Evofem Biosciences 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 Evofem Biosciences are associated (or correlated) with Better Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Better Therapeutics has no effect on the direction of Evofem Biosciences i.e., Evofem Biosciences and Better Therapeutics go up and down completely randomly.
Pair Corralation between Evofem Biosciences and Better Therapeutics
If you would invest 73.00 in Better Therapeutics on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Better Therapeutics or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evofem Biosciences vs. Better Therapeutics
Performance |
| Timeline |
| Evofem Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Better Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Evofem Biosciences and Better Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evofem Biosciences and Better Therapeutics
The main advantage of trading using opposite Evofem Biosciences and Better Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evofem Biosciences position performs unexpectedly, Better Therapeutics 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 Better Therapeutics will offset losses from the drop in Better Therapeutics' long position.| Evofem Biosciences vs. Tonix Pharmaceuticals Holding | Evofem Biosciences vs. Sonnet Biotherapeutics Holdings | Evofem Biosciences vs. Palisade Bio | Evofem Biosciences vs. Ibio Inc |
| Better Therapeutics vs. ABVC Biopharma | Better Therapeutics vs. Indaptus Therapeutics | Better Therapeutics vs. Pasithea Therapeutics Corp | Better Therapeutics vs. Forte Biosciences |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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