Correlation Between Premium Income and Entourage Health
Can any of the company-specific risk be diversified away by investing in both Premium Income and Entourage Health 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 Premium Income and Entourage Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Premium Income and Entourage Health Corp, you can compare the effects of market volatilities on Premium Income and Entourage Health 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 Premium Income with a short position of Entourage Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Premium Income and Entourage Health.
Diversification Opportunities for Premium Income and Entourage Health
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Premium and Entourage is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Premium Income and Entourage Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entourage Health Corp and Premium Income 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 Premium Income are associated (or correlated) with Entourage Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entourage Health Corp has no effect on the direction of Premium Income i.e., Premium Income and Entourage Health go up and down completely randomly.
Pair Corralation between Premium Income and Entourage Health
Assuming the 90 days trading horizon Premium Income is expected to under-perform the Entourage Health. But the stock apears to be less risky and, when comparing its historical volatility, Premium Income is 60.54 times less risky than Entourage Health. The stock trades about -0.03 of its potential returns per unit of risk. The Entourage Health Corp is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 0.50 in Entourage Health Corp on September 13, 2024 and sell it today you would earn a total of 0.50 from holding Entourage Health Corp or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Premium Income vs. Entourage Health Corp
Performance |
| Timeline |
| Premium Income |
| Entourage Health Corp |
Premium Income and Entourage Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Premium Income and Entourage Health
The main advantage of trading using opposite Premium Income and Entourage Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Premium Income position performs unexpectedly, Entourage Health 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 Entourage Health will offset losses from the drop in Entourage Health's long position.| Premium Income vs. Berkshire Hathaway CDR | Premium Income vs. E L Financial Corp | Premium Income vs. E L Financial 3 | Premium Income vs. Molson Coors Canada |
| Entourage Health vs. Decibel Cannabis | Entourage Health vs. iShares Canadian HYBrid | Entourage Health vs. Altagas Cum Red | Entourage Health vs. iShares Fundamental Hedged |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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