Correlation Between EUDA Health and Augmedix

Can any of the company-specific risk be diversified away by investing in both EUDA Health and Augmedix 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 EUDA Health and Augmedix into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EUDA Health Holdings and Augmedix, you can compare the effects of market volatilities on EUDA Health and Augmedix 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 EUDA Health with a short position of Augmedix. Check out your portfolio center. Please also check ongoing floating volatility patterns of EUDA Health and Augmedix.

Diversification Opportunities for EUDA Health and Augmedix

-0.82

Correlation Coefficient

EUDA Health  Augmedix

Pay attention - limited upside

The 3 months correlation between EUDA and Augmedix is -0.82. Overlapping area represents the amount of risk that can be diversified away by holding EUDA Health Holdings and Augmedix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Augmedix and EUDA Health 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 EUDA Health Holdings are associated (or correlated) with Augmedix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Augmedix has no effect on the direction of EUDA Health i.e., EUDA Health and Augmedix go up and down completely randomly.

Pair Corralation between EUDA Health and Augmedix

Given the investment horizon of 90 days EUDA Health Holdings is expected to generate 0.9 times more return on investment than Augmedix. However, EUDA Health Holdings is 1.12 times less risky than Augmedix. It trades about 0.13 of its potential returns per unit of risk. Augmedix is currently generating about -0.22 per unit of risk. If you would invest  123.00  in EUDA Health Holdings on March 11, 2024 and sell it today you would earn a total of  127.00  from holding EUDA Health Holdings or generate 103.25% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

EUDA Health Holdings  vs.  Augmedix

EUDA Health Holdings

Risk-Adjusted Performance

16 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in EUDA Health Holdings are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating fundamental indicators, EUDA Health sustained solid returns over the last few months and may actually be approaching a breakup point.

Augmedix

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Augmedix has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain fairly strong which may send shares a bit higher in July 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with EUDA Health and Augmedix

The main advantage of trading using opposite EUDA Health and Augmedix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EUDA Health position performs unexpectedly, Augmedix 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 Augmedix will offset losses from the drop in Augmedix's long position.

The idea behind EUDA Health Holdings and Augmedix pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 CEOs Directory module to screen CEOs from public companies around the world.