Correlation Between Evolent Health and EUDA Health
Can any of the company-specific risk be diversified away by investing in both Evolent Health and EUDA 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 Evolent Health and EUDA Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evolent Health and EUDA Health Holdings, you can compare the effects of market volatilities on Evolent Health and EUDA 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 Evolent Health with a short position of EUDA Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evolent Health and EUDA Health.
Diversification Opportunities for Evolent Health and EUDA Health
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evolent and EUDA is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Evolent Health and EUDA Health Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EUDA Health Holdings and Evolent 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 Evolent Health are associated (or correlated) with EUDA Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EUDA Health Holdings has no effect on the direction of Evolent Health i.e., Evolent Health and EUDA Health go up and down completely randomly.
Pair Corralation between Evolent Health and EUDA Health
Considering the 90-day investment horizon Evolent Health is expected to under-perform the EUDA Health. In addition to that, Evolent Health is 2.34 times more volatile than EUDA Health Holdings. It trades about -0.17 of its total potential returns per unit of risk. EUDA Health Holdings is currently generating about 0.06 per unit of volatility. If you would invest 425.00 in EUDA Health Holdings on September 1, 2024 and sell it today you would earn a total of 18.00 from holding EUDA Health Holdings or generate 4.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evolent Health vs. EUDA Health Holdings
Performance |
| Timeline |
| Evolent Health |
| EUDA Health Holdings |
Evolent Health and EUDA Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evolent Health and EUDA Health
The main advantage of trading using opposite Evolent Health and EUDA Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evolent Health position performs unexpectedly, EUDA 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 EUDA Health will offset losses from the drop in EUDA Health's long position.| Evolent Health vs. CareMax | Evolent Health vs. Certara | Evolent Health vs. Definitive Healthcare Corp | Evolent Health vs. National Research Corp |
| 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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