Correlation Between ENDRA Life and Check Cap
Can any of the company-specific risk be diversified away by investing in both ENDRA Life and Check Cap 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 ENDRA Life and Check Cap into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ENDRA Life Sciences and Check Cap, you can compare the effects of market volatilities on ENDRA Life and Check Cap 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 ENDRA Life with a short position of Check Cap. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENDRA Life and Check Cap.
Diversification Opportunities for ENDRA Life and Check Cap
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between ENDRA and Check is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding ENDRA Life Sciences and Check Cap in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Cap and ENDRA Life 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 ENDRA Life Sciences are associated (or correlated) with Check Cap. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Cap has no effect on the direction of ENDRA Life i.e., ENDRA Life and Check Cap go up and down completely randomly.
Pair Corralation between ENDRA Life and Check Cap
Given the investment horizon of 90 days ENDRA Life Sciences is expected to under-perform the Check Cap. But the stock apears to be less risky and, when comparing its historical volatility, ENDRA Life Sciences is 2.61 times less risky than Check Cap. The stock trades about -0.03 of its potential returns per unit of risk. The Check Cap is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 190.00 in Check Cap on November 2, 2024 and sell it today you would lose (89.00) from holding Check Cap or give up 46.84% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ENDRA Life Sciences vs. Check Cap
Performance |
| Timeline |
| ENDRA Life Sciences |
| Check Cap |
ENDRA Life and Check Cap Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENDRA Life and Check Cap
The main advantage of trading using opposite ENDRA Life and Check Cap positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENDRA Life position performs unexpectedly, Check Cap 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 Check Cap will offset losses from the drop in Check Cap's long position.| ENDRA Life vs. Burning Rock Biotech | ENDRA Life vs. Neuronetics | ENDRA Life vs. DarioHealth Corp | ENDRA Life vs. Sera Prognostics |
| Check Cap vs. Fonar | Check Cap vs. Burning Rock Biotech | Check Cap vs. Sera Prognostics | Check Cap vs. DarioHealth Corp |
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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