Correlation Between Femasys and Arhaus
Can any of the company-specific risk be diversified away by investing in both Femasys and Arhaus 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 Femasys and Arhaus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Femasys and Arhaus Inc, you can compare the effects of market volatilities on Femasys and Arhaus 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 Femasys with a short position of Arhaus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Femasys and Arhaus.
Diversification Opportunities for Femasys and Arhaus
Very good diversification
The 3 months correlation between Femasys and Arhaus is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and Arhaus Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arhaus Inc and Femasys 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 Femasys are associated (or correlated) with Arhaus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arhaus Inc has no effect on the direction of Femasys i.e., Femasys and Arhaus go up and down completely randomly.
Pair Corralation between Femasys and Arhaus
Given the investment horizon of 90 days Femasys is expected to generate 1.77 times more return on investment than Arhaus. However, Femasys is 1.77 times more volatile than Arhaus Inc. It trades about 0.04 of its potential returns per unit of risk. Arhaus Inc is currently generating about 0.02 per unit of risk. If you would invest 93.00 in Femasys on August 27, 2024 and sell it today you would earn a total of 12.00 from holding Femasys or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Femasys vs. Arhaus Inc
Performance |
| Timeline |
| Femasys |
| Arhaus Inc |
Femasys and Arhaus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Femasys and Arhaus
The main advantage of trading using opposite Femasys and Arhaus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Femasys position performs unexpectedly, Arhaus 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 Arhaus will offset losses from the drop in Arhaus' long position.| Femasys vs. Heartbeam | Femasys vs. EUDA Health Holdings | Femasys vs. Nutex Health | Femasys vs. Healthcare Triangle |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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