Correlation Between Positive Physicians and EGF Theramed
Can any of the company-specific risk be diversified away by investing in both Positive Physicians 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 Positive Physicians and EGF Theramed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Positive Physicians Holdings and EGF Theramed Health, you can compare the effects of market volatilities on Positive Physicians 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 Positive Physicians with a short position of EGF Theramed. Check out your portfolio center. Please also check ongoing floating volatility patterns of Positive Physicians and EGF Theramed.
Diversification Opportunities for Positive Physicians and EGF Theramed
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Positive and EGF is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Positive Physicians Holdings 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 Positive Physicians 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 Positive Physicians Holdings 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 Positive Physicians i.e., Positive Physicians and EGF Theramed go up and down completely randomly.
Pair Corralation between Positive Physicians and EGF Theramed
Given the investment horizon of 90 days Positive Physicians Holdings is expected to under-perform the EGF Theramed. But the pink sheet apears to be less risky and, when comparing its historical volatility, Positive Physicians Holdings is 6.66 times less risky than EGF Theramed. The pink sheet trades about -0.04 of its potential returns per unit of risk. The EGF Theramed Health is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 36.00 in EGF Theramed Health on August 30, 2024 and sell it today you would lose (15.00) from holding EGF Theramed Health or give up 41.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 8.48% |
| Values | Daily Returns |
Positive Physicians Holdings vs. EGF Theramed Health
Performance |
| Timeline |
| Positive Physicians |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| EGF Theramed Health |
Positive Physicians and EGF Theramed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Positive Physicians and EGF Theramed
The main advantage of trading using opposite Positive Physicians and EGF Theramed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Positive Physicians 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.| Positive Physicians vs. Ambac Financial Group | Positive Physicians vs. AMERISAFE | Positive Physicians vs. Assured Guaranty | Positive Physicians vs. Essent Group |
| EGF Theramed vs. Reliq Health Technologies | EGF Theramed vs. Healthcare Triangle | EGF Theramed vs. Bullfrog AI Holdings, | EGF Theramed vs. Mednow Inc |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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