Correlation Between Pear Therapeutics and EGF Theramed
Can any of the company-specific risk be diversified away by investing in both Pear Therapeutics and EGF Theramed 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 Pear Therapeutics and EGF Theramed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pear Therapeutics and EGF Theramed Health, you can compare the effects of market volatilities on Pear Therapeutics and EGF Theramed 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 Pear Therapeutics with a short position of EGF Theramed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pear Therapeutics and EGF Theramed.
Diversification Opportunities for Pear Therapeutics and EGF Theramed
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Pear and EGF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Pear Therapeutics and EGF Theramed Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EGF Theramed Health and Pear Therapeutics 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 Pear Therapeutics are associated (or correlated) with EGF Theramed. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EGF Theramed Health has no effect on the direction of Pear Therapeutics i.e., Pear Therapeutics and EGF Theramed go up and down completely randomly.
Pair Corralation between Pear Therapeutics and EGF Theramed
If you would invest 6.80 in EGF Theramed Health on October 23, 2024 and sell it today you would earn a total of 12.20 from holding EGF Theramed Health or generate 179.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Pear Therapeutics vs. EGF Theramed Health
Performance |
| Timeline |
| Pear Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| EGF Theramed Health |
Pear Therapeutics and EGF Theramed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pear Therapeutics and EGF Theramed
The main advantage of trading using opposite Pear Therapeutics and EGF Theramed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pear Therapeutics position performs unexpectedly, EGF Theramed 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 EGF Theramed will offset losses from the drop in EGF Theramed's long position.| Pear Therapeutics vs. HNI Corp | Pear Therapeutics vs. Willscot Mobile Mini | Pear Therapeutics vs. Vestis | Pear Therapeutics vs. Highway Holdings Limited |
| EGF Theramed vs. Mitesco | EGF Theramed vs. Reliq Health Technologies | EGF Theramed vs. Healthcare Triangle | EGF Theramed vs. Bullfrog AI Holdings, |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |