Correlation Between Femasys and La Rosa
Can any of the company-specific risk be diversified away by investing in both Femasys and La Rosa 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 La Rosa into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Femasys and La Rosa Holdings, you can compare the effects of market volatilities on Femasys and La Rosa 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 La Rosa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Femasys and La Rosa.
Diversification Opportunities for Femasys and La Rosa
Good diversification
The 3 months correlation between Femasys and LRHC is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Femasys and La Rosa Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on La Rosa Holdings 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 La Rosa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of La Rosa Holdings has no effect on the direction of Femasys i.e., Femasys and La Rosa go up and down completely randomly.
Pair Corralation between Femasys and La Rosa
Given the investment horizon of 90 days Femasys is expected to generate 1.43 times more return on investment than La Rosa. However, Femasys is 1.43 times more volatile than La Rosa Holdings. It trades about 0.05 of its potential returns per unit of risk. La Rosa Holdings is currently generating about 0.01 per unit of risk. If you would invest 68.00 in Femasys on September 4, 2024 and sell it today you would earn a total of 42.00 from holding Femasys or generate 61.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 78.02% |
| Values | Daily Returns |
Femasys vs. La Rosa Holdings
Performance |
| Timeline |
| Femasys |
| La Rosa Holdings |
Femasys and La Rosa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Femasys and La Rosa
The main advantage of trading using opposite Femasys and La Rosa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Femasys position performs unexpectedly, La Rosa 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 La Rosa will offset losses from the drop in La Rosa's long position.| Femasys vs. Baxter International | Femasys vs. West Pharmaceutical Services | Femasys vs. ResMed Inc | Femasys vs. The Cooper Companies, |
| La Rosa vs. Mid Atlantic Home Health | La Rosa vs. Alvotech | La Rosa vs. PennantPark Floating Rate | La Rosa vs. Franklin Credit Management |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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