Correlation Between Globus Medical and Echo Therapeutics
Can any of the company-specific risk be diversified away by investing in both Globus Medical and Echo Therapeutics 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 Globus Medical and Echo Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Globus Medical and Echo Therapeutics, you can compare the effects of market volatilities on Globus Medical and Echo Therapeutics 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 Globus Medical with a short position of Echo Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Globus Medical and Echo Therapeutics.
Diversification Opportunities for Globus Medical and Echo Therapeutics
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Globus and Echo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Globus Medical and Echo Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Echo Therapeutics and Globus Medical 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 Globus Medical are associated (or correlated) with Echo Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Echo Therapeutics has no effect on the direction of Globus Medical i.e., Globus Medical and Echo Therapeutics go up and down completely randomly.
Pair Corralation between Globus Medical and Echo Therapeutics
If you would invest (100.00) in Echo Therapeutics on January 21, 2024 and sell it today you would earn a total of 100.00 from holding Echo Therapeutics or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Globus Medical vs. Echo Therapeutics
Performance |
| Timeline |
| Globus Medical |
| Echo Therapeutics |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Globus Medical and Echo Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Globus Medical and Echo Therapeutics
The main advantage of trading using opposite Globus Medical and Echo Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Globus Medical position performs unexpectedly, Echo Therapeutics 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 Echo Therapeutics will offset losses from the drop in Echo Therapeutics' long position.| Globus Medical vs. Agilent Technologies | Globus Medical vs. Illumina | Globus Medical vs. Waters | Globus Medical vs. Thermo Fisher Scientific |
| Echo Therapeutics vs. American Clean Resources | Echo Therapeutics vs. Transphorm Technology | Echo Therapeutics vs. Vacasa Inc | Echo Therapeutics vs. China Clean Energy |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities |