Correlation Between Hims Hers and EDAP TMS
Can any of the company-specific risk be diversified away by investing in both Hims Hers and EDAP TMS 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 Hims Hers and EDAP TMS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hims Hers Health and EDAP TMS SA, you can compare the effects of market volatilities on Hims Hers and EDAP TMS 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 Hims Hers with a short position of EDAP TMS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hims Hers and EDAP TMS.
Diversification Opportunities for Hims Hers and EDAP TMS
Very good diversification
The 3 months correlation between Hims and EDAP is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Hims Hers Health and EDAP TMS SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EDAP TMS SA and Hims Hers 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 Hims Hers Health are associated (or correlated) with EDAP TMS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EDAP TMS SA has no effect on the direction of Hims Hers i.e., Hims Hers and EDAP TMS go up and down completely randomly.
Pair Corralation between Hims Hers and EDAP TMS
Given the investment horizon of 90 days Hims Hers Health is expected to generate 1.29 times more return on investment than EDAP TMS. However, Hims Hers is 1.29 times more volatile than EDAP TMS SA. It trades about 0.09 of its potential returns per unit of risk. EDAP TMS SA is currently generating about -0.07 per unit of risk. If you would invest 934.00 in Hims Hers Health on November 9, 2024 and sell it today you would earn a total of 3,113 from holding Hims Hers Health or generate 333.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hims Hers Health vs. EDAP TMS SA
Performance |
| Timeline |
| Hims Hers Health |
| EDAP TMS SA |
Hims Hers and EDAP TMS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hims Hers and EDAP TMS
The main advantage of trading using opposite Hims Hers and EDAP TMS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hims Hers position performs unexpectedly, EDAP TMS 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 EDAP TMS will offset losses from the drop in EDAP TMS's long position.| Hims Hers vs. ELF Beauty | Hims Hers vs. Newell Brands | Hims Hers vs. Virgin Group Acquisition | Hims Hers vs. Estee Lauder Companies |
| EDAP TMS vs. Patterson Companies | EDAP TMS vs. Henry Schein | EDAP TMS vs. McKesson | EDAP TMS vs. Cardinal Health |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |