Correlation Between EHEALTH and Elysee Development
Can any of the company-specific risk be diversified away by investing in both EHEALTH and Elysee Development 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 EHEALTH and Elysee Development into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EHEALTH and Elysee Development Corp, you can compare the effects of market volatilities on EHEALTH and Elysee Development 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 EHEALTH with a short position of Elysee Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of EHEALTH and Elysee Development.
Diversification Opportunities for EHEALTH and Elysee Development
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EHEALTH and Elysee is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding EHEALTH and Elysee Development Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elysee Development Corp and EHEALTH 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 EHEALTH are associated (or correlated) with Elysee Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elysee Development Corp has no effect on the direction of EHEALTH i.e., EHEALTH and Elysee Development go up and down completely randomly.
Pair Corralation between EHEALTH and Elysee Development
Assuming the 90 days trading horizon EHEALTH is expected to generate 8.79 times less return on investment than Elysee Development. But when comparing it to its historical volatility, EHEALTH is 1.26 times less risky than Elysee Development. It trades about 0.0 of its potential returns per unit of risk. Elysee Development Corp is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 28.00 in Elysee Development Corp on September 12, 2024 and sell it today you would lose (9.00) from holding Elysee Development Corp or give up 32.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.72% |
| Values | Daily Returns |
EHEALTH vs. Elysee Development Corp
Performance |
| Timeline |
| EHEALTH |
| Elysee Development Corp |
EHEALTH and Elysee Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EHEALTH and Elysee Development
The main advantage of trading using opposite EHEALTH and Elysee Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EHEALTH position performs unexpectedly, Elysee Development 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 Elysee Development will offset losses from the drop in Elysee Development's long position.| EHEALTH vs. PREMIER FOODS | EHEALTH vs. Commonwealth Bank of | EHEALTH vs. ASSOC BR FOODS | EHEALTH vs. Thai Beverage Public |
| Elysee Development vs. Ameriprise Financial | Elysee Development vs. Ares Management Corp | Elysee Development vs. Superior Plus Corp | Elysee Development vs. SIVERS SEMICONDUCTORS AB |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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