Correlation Between Wesmark Government and Eventide Healthcare
Can any of the company-specific risk be diversified away by investing in both Wesmark Government and Eventide Healthcare 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 Wesmark Government and Eventide Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wesmark Government Bond and Eventide Healthcare Life, you can compare the effects of market volatilities on Wesmark Government and Eventide Healthcare 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 Wesmark Government with a short position of Eventide Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wesmark Government and Eventide Healthcare.
Diversification Opportunities for Wesmark Government and Eventide Healthcare
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Wesmark and Eventide is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Wesmark Government Bond and Eventide Healthcare Life in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eventide Healthcare Life and Wesmark Government 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 Wesmark Government Bond are associated (or correlated) with Eventide Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eventide Healthcare Life has no effect on the direction of Wesmark Government i.e., Wesmark Government and Eventide Healthcare go up and down completely randomly.
Pair Corralation between Wesmark Government and Eventide Healthcare
Assuming the 90 days horizon Wesmark Government is expected to generate 14.4 times less return on investment than Eventide Healthcare. But when comparing it to its historical volatility, Wesmark Government Bond is 5.18 times less risky than Eventide Healthcare. It trades about 0.04 of its potential returns per unit of risk. Eventide Healthcare Life is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3,251 in Eventide Healthcare Life on September 19, 2024 and sell it today you would earn a total of 118.00 from holding Eventide Healthcare Life or generate 3.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wesmark Government Bond vs. Eventide Healthcare Life
Performance |
| Timeline |
| Wesmark Government Bond |
| Eventide Healthcare Life |
Wesmark Government and Eventide Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wesmark Government and Eventide Healthcare
The main advantage of trading using opposite Wesmark Government and Eventide Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wesmark Government position performs unexpectedly, Eventide Healthcare 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 Eventide Healthcare will offset losses from the drop in Eventide Healthcare's long position.| Wesmark Government vs. Wesmark Growth Fund | Wesmark Government vs. Wesmark Small Pany | Wesmark Government vs. Wesmark Balanced Fund | Wesmark Government vs. Wesmark West Virginia |
| Eventide Healthcare vs. Wesmark Government Bond | Eventide Healthcare vs. Dws Government Money | Eventide Healthcare vs. Aig Government Money | Eventide Healthcare vs. Payden Government Fund |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |