Correlation Between Evofem Biosciences and Gentex
Can any of the company-specific risk be diversified away by investing in both Evofem Biosciences and Gentex 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 Gentex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evofem Biosciences and Gentex, you can compare the effects of market volatilities on Evofem Biosciences and Gentex 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 Gentex. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evofem Biosciences and Gentex.
Diversification Opportunities for Evofem Biosciences and Gentex
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Evofem and Gentex is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Evofem Biosciences and Gentex in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gentex 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 Gentex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gentex has no effect on the direction of Evofem Biosciences i.e., Evofem Biosciences and Gentex go up and down completely randomly.
Pair Corralation between Evofem Biosciences and Gentex
If you would invest 3,053 in Gentex on September 2, 2024 and sell it today you would earn a total of 3.00 from holding Gentex or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Evofem Biosciences vs. Gentex
Performance |
| Timeline |
| Evofem Biosciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Gentex |
Evofem Biosciences and Gentex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evofem Biosciences and Gentex
The main advantage of trading using opposite Evofem Biosciences and Gentex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evofem Biosciences position performs unexpectedly, Gentex 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 Gentex will offset losses from the drop in Gentex's long position.| Evofem Biosciences vs. Rivian Automotive | Evofem Biosciences vs. Tesla Inc | Evofem Biosciences vs. PACCAR Inc | Evofem Biosciences vs. Grupo Aeroportuario del |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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