Correlation Between So Young and EGF Theramed
Can any of the company-specific risk be diversified away by investing in both So Young 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 So Young and EGF Theramed into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between So Young International and EGF Theramed Health, you can compare the effects of market volatilities on So Young 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 So Young with a short position of EGF Theramed. Check out your portfolio center. Please also check ongoing floating volatility patterns of So Young and EGF Theramed.
Diversification Opportunities for So Young and EGF Theramed
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between So Young and EGF is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding So Young International 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 So Young 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 So Young International 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 So Young i.e., So Young and EGF Theramed go up and down completely randomly.
Pair Corralation between So Young and EGF Theramed
Allowing for the 90-day total investment horizon So Young International is expected to under-perform the EGF Theramed. But the stock apears to be less risky and, when comparing its historical volatility, So Young International is 12.27 times less risky than EGF Theramed. The stock trades about -0.02 of its potential returns per unit of risk. The EGF Theramed Health is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 7.80 in EGF Theramed Health on September 1, 2024 and sell it today you would earn a total of 14.20 from holding EGF Theramed Health or generate 182.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
So Young International vs. EGF Theramed Health
Performance |
| Timeline |
| So Young International |
| EGF Theramed Health |
So Young and EGF Theramed Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with So Young and EGF Theramed
The main advantage of trading using opposite So Young and EGF Theramed positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if So Young 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.| So Young vs. National Research Corp | So Young vs. Definitive Healthcare Corp | So Young vs. HealthStream | So Young vs. Streamline Health Solutions |
| EGF Theramed vs. GE HealthCare Technologies | EGF Theramed vs. Veeva Systems Class | EGF Theramed vs. Solventum Corp | EGF Theramed vs. Doximity |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |