Correlation Between Energenesis Biomedical and Excelsior Medical

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

By analyzing existing cross correlation between Energenesis Biomedical Co and Excelsior Medical Co, you can compare the effects of market volatilities on Energenesis Biomedical and Excelsior 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 Energenesis Biomedical with a short position of Excelsior Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Energenesis Biomedical and Excelsior Medical.

Diversification Opportunities for Energenesis Biomedical and Excelsior Medical

0.53

Correlation Coefficient

Energenesis Biomedical  Excelsior Medical

Very weak diversification

The 3 months correlation between Energenesis and Excelsior is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Energenesis Biomedical Co and Excelsior Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Excelsior Medical and Energenesis Biomedical 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 Energenesis Biomedical Co are associated (or correlated) with Excelsior Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Excelsior Medical has no effect on the direction of Energenesis Biomedical i.e., Energenesis Biomedical and Excelsior Medical go up and down completely randomly.

Pair Corralation between Energenesis Biomedical and Excelsior Medical

Assuming the 90 days trading horizon Energenesis Biomedical Co is expected to generate 10.36 times more return on investment than Excelsior Medical. However, Energenesis Biomedical is 10.36 times more volatile than Excelsior Medical Co. It trades about 0.33 of its potential returns per unit of risk. Excelsior Medical Co is currently generating about 0.3 per unit of risk. If you would invest  5,410  in Energenesis Biomedical Co on December 5, 2024 and sell it today you would earn a total of  1,810  from holding Energenesis Biomedical Co or generate 33.46% return on investment over 90 days.

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

Energenesis Biomedical Co  vs.  Excelsior Medical Co

Energenesis Biomedical

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Energenesis Biomedical Co are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly abnormal basic indicators, Energenesis Biomedical showed solid returns over the last few months and may actually be approaching a breakup point.

Excelsior Medical

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Excelsior Medical Co are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable basic indicators, Excelsior Medical is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Energenesis Biomedical and Excelsior Medical

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

The idea behind Energenesis Biomedical Co and Excelsior Medical 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.

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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 Stocks Directory module to find actively traded stocks across global markets.