Correlation Between Human Xtensions and Epitomee Medical
Can any of the company-specific risk be diversified away by investing in both Human Xtensions and Epitomee Medical 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 Human Xtensions and Epitomee Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Human Xtensions and Epitomee Medical, you can compare the effects of market volatilities on Human Xtensions and Epitomee Medical 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 Human Xtensions with a short position of Epitomee Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Human Xtensions and Epitomee Medical.
Diversification Opportunities for Human Xtensions and Epitomee Medical
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Human and Epitomee is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Human Xtensions and Epitomee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epitomee Medical and Human Xtensions 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 Human Xtensions are associated (or correlated) with Epitomee Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epitomee Medical has no effect on the direction of Human Xtensions i.e., Human Xtensions and Epitomee Medical go up and down completely randomly.
Pair Corralation between Human Xtensions and Epitomee Medical
Assuming the 90 days trading horizon Human Xtensions is expected to generate 13.44 times less return on investment than Epitomee Medical. But when comparing it to its historical volatility, Human Xtensions is 2.26 times less risky than Epitomee Medical. It trades about 0.02 of its potential returns per unit of risk. Epitomee Medical is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 34,740 in Epitomee Medical on August 25, 2024 and sell it today you would earn a total of 59,080 from holding Epitomee Medical or generate 170.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Human Xtensions vs. Epitomee Medical
Performance |
| Timeline |
| Human Xtensions |
| Epitomee Medical |
Human Xtensions and Epitomee Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Human Xtensions and Epitomee Medical
The main advantage of trading using opposite Human Xtensions and Epitomee Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Human Xtensions position performs unexpectedly, Epitomee Medical 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 Epitomee Medical will offset losses from the drop in Epitomee Medical's long position.| Human Xtensions vs. Intercure | Human Xtensions vs. Sofwave Medical | Human Xtensions vs. Epitomee Medical | Human Xtensions vs. Bio View |
| Epitomee Medical vs. Intercure | Epitomee Medical vs. Sofwave Medical | Epitomee Medical vs. Bio View | Epitomee Medical vs. Elbit Imaging |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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