Correlation Between ENDRA Life and Sera Prognostics
Can any of the company-specific risk be diversified away by investing in both ENDRA Life and Sera Prognostics 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 Sera Prognostics 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 Sera Prognostics, you can compare the effects of market volatilities on ENDRA Life and Sera Prognostics 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 Sera Prognostics. Check out your portfolio center. Please also check ongoing floating volatility patterns of ENDRA Life and Sera Prognostics.
Diversification Opportunities for ENDRA Life and Sera Prognostics
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between ENDRA and Sera is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding ENDRA Life Sciences and Sera Prognostics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sera Prognostics 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 Sera Prognostics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sera Prognostics has no effect on the direction of ENDRA Life i.e., ENDRA Life and Sera Prognostics go up and down completely randomly.
Pair Corralation between ENDRA Life and Sera Prognostics
Given the investment horizon of 90 days ENDRA Life Sciences is expected to generate 2.81 times more return on investment than Sera Prognostics. However, ENDRA Life is 2.81 times more volatile than Sera Prognostics. It trades about 0.04 of its potential returns per unit of risk. Sera Prognostics is currently generating about -0.04 per unit of risk. If you would invest 704.00 in ENDRA Life Sciences on August 30, 2024 and sell it today you would lose (99.00) from holding ENDRA Life Sciences or give up 14.06% 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. Sera Prognostics
Performance |
| Timeline |
| ENDRA Life Sciences |
| Sera Prognostics |
ENDRA Life and Sera Prognostics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ENDRA Life and Sera Prognostics
The main advantage of trading using opposite ENDRA Life and Sera Prognostics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ENDRA Life position performs unexpectedly, Sera Prognostics 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 Sera Prognostics will offset losses from the drop in Sera Prognostics' long position.| ENDRA Life vs. Burning Rock Biotech | ENDRA Life vs. Neuronetics | ENDRA Life vs. DarioHealth Corp | ENDRA Life vs. Sera Prognostics |
| Sera Prognostics vs. Fonar | Sera Prognostics vs. Burning Rock Biotech | Sera Prognostics vs. Exagen Inc | Sera Prognostics vs. Sotera Health Co |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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