Correlation Between HealthStream and EUDA Health
Can any of the company-specific risk be diversified away by investing in both HealthStream 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 HealthStream and EUDA Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HealthStream and EUDA Health Holdings, you can compare the effects of market volatilities on HealthStream 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 HealthStream with a short position of EUDA Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of HealthStream and EUDA Health.
Diversification Opportunities for HealthStream and EUDA Health
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between HealthStream and EUDA is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding HealthStream 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 HealthStream 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 HealthStream 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 HealthStream i.e., HealthStream and EUDA Health go up and down completely randomly.
Pair Corralation between HealthStream and EUDA Health
Given the investment horizon of 90 days HealthStream is expected to generate 6.26 times less return on investment than EUDA Health. But when comparing it to its historical volatility, HealthStream is 5.09 times less risky than EUDA Health. It trades about 0.04 of its potential returns per unit of risk. EUDA Health Holdings is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 244.00 in EUDA Health Holdings on August 29, 2024 and sell it today you would earn a total of 188.00 from holding EUDA Health Holdings or generate 77.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
HealthStream vs. EUDA Health Holdings
Performance |
| Timeline |
| HealthStream |
| EUDA Health Holdings |
HealthStream and EUDA Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HealthStream and EUDA Health
The main advantage of trading using opposite HealthStream and EUDA Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HealthStream 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.| HealthStream vs. National Research Corp | HealthStream vs. Forian Inc | HealthStream vs. Streamline Health Solutions | HealthStream vs. Definitive Healthcare 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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