Correlation Between EUDA Health and Etao International
Can any of the company-specific risk be diversified away by investing in both EUDA Health and Etao International 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 Etao International 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 Etao International Co, you can compare the effects of market volatilities on EUDA Health and Etao International 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 Etao International. Check out your portfolio center. Please also check ongoing floating volatility patterns of EUDA Health and Etao International.
Diversification Opportunities for EUDA Health and Etao International
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EUDA and Etao is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding EUDA Health Holdings and Etao International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Etao International 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 Etao International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Etao International has no effect on the direction of EUDA Health i.e., EUDA Health and Etao International go up and down completely randomly.
Pair Corralation between EUDA Health and Etao International
Given the investment horizon of 90 days EUDA Health Holdings is expected to generate 0.2 times more return on investment than Etao International. However, EUDA Health Holdings is 4.98 times less risky than Etao International. It trades about 0.19 of its potential returns per unit of risk. Etao International Co is currently generating about 0.0 per unit of risk. If you would invest 137.00 in EUDA Health Holdings on March 3, 2024 and sell it today you would earn a total of 116.00 from holding EUDA Health Holdings or generate 84.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
EUDA Health Holdings vs. Etao International Co
Performance |
Timeline |
EUDA Health Holdings |
Etao International |
EUDA Health and Etao International Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EUDA Health and Etao International
The main advantage of trading using opposite EUDA Health and Etao International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EUDA Health position performs unexpectedly, Etao International 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 Etao International will offset losses from the drop in Etao International's long position.The idea behind EUDA Health Holdings and Etao International Co 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.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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
Equity Valuation Check real value of public entities based on technical and fundamental data | |
Commodity Directory Find actively traded commodities issued by global exchanges | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Stocks Directory Find actively traded stocks across global markets | |
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 |