Correlation Between EHEALTH and TGS-NOPEC GEOPHYSIC
Can any of the company-specific risk be diversified away by investing in both EHEALTH and TGS-NOPEC GEOPHYSIC 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 TGS-NOPEC GEOPHYSIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EHEALTH and TGS NOPEC GEOPHYSIC, you can compare the effects of market volatilities on EHEALTH and TGS-NOPEC GEOPHYSIC 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 TGS-NOPEC GEOPHYSIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of EHEALTH and TGS-NOPEC GEOPHYSIC.
Diversification Opportunities for EHEALTH and TGS-NOPEC GEOPHYSIC
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between EHEALTH and TGS-NOPEC is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding EHEALTH and TGS NOPEC GEOPHYSIC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGS NOPEC GEOPHYSIC 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 TGS-NOPEC GEOPHYSIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGS NOPEC GEOPHYSIC has no effect on the direction of EHEALTH i.e., EHEALTH and TGS-NOPEC GEOPHYSIC go up and down completely randomly.
Pair Corralation between EHEALTH and TGS-NOPEC GEOPHYSIC
Assuming the 90 days trading horizon EHEALTH is expected to under-perform the TGS-NOPEC GEOPHYSIC. In addition to that, EHEALTH is 1.28 times more volatile than TGS NOPEC GEOPHYSIC. It trades about -0.02 of its total potential returns per unit of risk. TGS NOPEC GEOPHYSIC is currently generating about 0.08 per unit of volatility. If you would invest 525.00 in TGS NOPEC GEOPHYSIC on September 2, 2024 and sell it today you would earn a total of 406.00 from holding TGS NOPEC GEOPHYSIC or generate 77.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EHEALTH vs. TGS NOPEC GEOPHYSIC
Performance |
| Timeline |
| EHEALTH |
| TGS NOPEC GEOPHYSIC |
EHEALTH and TGS-NOPEC GEOPHYSIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EHEALTH and TGS-NOPEC GEOPHYSIC
The main advantage of trading using opposite EHEALTH and TGS-NOPEC GEOPHYSIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EHEALTH position performs unexpectedly, TGS-NOPEC GEOPHYSIC 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 TGS-NOPEC GEOPHYSIC will offset losses from the drop in TGS-NOPEC GEOPHYSIC's long position.| EHEALTH vs. SIVERS SEMICONDUCTORS AB | EHEALTH vs. Darden Restaurants | EHEALTH vs. Reliance Steel Aluminum | EHEALTH vs. Q2M Managementberatung AG |
| TGS-NOPEC GEOPHYSIC vs. The Hanover Insurance | TGS-NOPEC GEOPHYSIC vs. EHEALTH | TGS-NOPEC GEOPHYSIC vs. Ping An Insurance | TGS-NOPEC GEOPHYSIC vs. ATRYS HEALTH SA |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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