Correlation Between Encision and Globus Medical
Can any of the company-specific risk be diversified away by investing in both Encision and Globus Medical 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 Encision and Globus Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Encision and Globus Medical, you can compare the effects of market volatilities on Encision and Globus Medical 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 Encision with a short position of Globus Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Encision and Globus Medical.
Diversification Opportunities for Encision and Globus Medical
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Encision and Globus is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Encision and Globus Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Globus Medical and Encision 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 Encision are associated (or correlated) with Globus Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Globus Medical has no effect on the direction of Encision i.e., Encision and Globus Medical go up and down completely randomly.
Pair Corralation between Encision and Globus Medical
If you would invest 46.00 in Encision on January 26, 2024 and sell it today you would earn a total of 0.00 from holding Encision or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.76% |
| Values | Daily Returns |
Encision vs. Globus Medical
Performance |
| Timeline |
| Encision |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Globus Medical |
Encision and Globus Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Encision and Globus Medical
The main advantage of trading using opposite Encision and Globus Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Encision position performs unexpectedly, Globus Medical 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 Globus Medical will offset losses from the drop in Globus Medical's long position.| Encision vs. Procyon | Encision vs. Environmmtl Tectonic | Encision vs. SCI Engineered Materials | Encision vs. Electronic Control Security |
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 Investment Finder module to use AI to screen and filter profitable investment opportunities.
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