Correlation Between Finexia Financial and EVE Health
Can any of the company-specific risk be diversified away by investing in both Finexia Financial and EVE 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 Finexia Financial and EVE Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Finexia Financial Group and EVE Health Group, you can compare the effects of market volatilities on Finexia Financial and EVE 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 Finexia Financial with a short position of EVE Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Finexia Financial and EVE Health.
Diversification Opportunities for Finexia Financial and EVE Health
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Finexia and EVE is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Finexia Financial Group and EVE Health Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EVE Health Group and Finexia Financial 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 Finexia Financial Group are associated (or correlated) with EVE Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EVE Health Group has no effect on the direction of Finexia Financial i.e., Finexia Financial and EVE Health go up and down completely randomly.
Pair Corralation between Finexia Financial and EVE Health
Assuming the 90 days trading horizon Finexia Financial Group is expected to generate 3.0 times more return on investment than EVE Health. However, Finexia Financial is 3.0 times more volatile than EVE Health Group. It trades about 0.01 of its potential returns per unit of risk. EVE Health Group is currently generating about -0.04 per unit of risk. If you would invest 34.00 in Finexia Financial Group on November 1, 2024 and sell it today you would lose (5.00) from holding Finexia Financial Group or give up 14.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Finexia Financial Group vs. EVE Health Group
Performance |
| Timeline |
| Finexia Financial |
| EVE Health Group |
Finexia Financial and EVE Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Finexia Financial and EVE Health
The main advantage of trading using opposite Finexia Financial and EVE Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Finexia Financial position performs unexpectedly, EVE 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 EVE Health will offset losses from the drop in EVE Health's long position.| Finexia Financial vs. Ecofibre | Finexia Financial vs. iShares Global Healthcare | Finexia Financial vs. Australian Dairy Farms | Finexia Financial vs. Adriatic Metals Plc |
| EVE Health vs. Dalaroo Metals | EVE Health vs. DY6 Metals | EVE Health vs. ACDC Metals | EVE Health vs. Centaurus Metals |
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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