Correlation Between Aspira Womens and Electrocore LLC

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

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

Diversification Opportunities for Aspira Womens and Electrocore LLC

0.59

Correlation Coefficient

Aspira Womens  Electrocore LLC

Very weak diversification

The 3 months correlation between Aspira and Electrocore is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Aspira Womens Health and Electrocore LLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Electrocore LLC and Aspira Womens 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 Aspira Womens Health are associated (or correlated) with Electrocore LLC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Electrocore LLC has no effect on the direction of Aspira Womens i.e., Aspira Womens and Electrocore LLC go up and down completely randomly.

Pair Corralation between Aspira Womens and Electrocore LLC

Considering the 90-day investment horizon Aspira Womens Health is expected to under-perform the Electrocore LLC. In addition to that, Aspira Womens is 1.68 times more volatile than Electrocore LLC. It trades about -0.3 of its total potential returns per unit of risk. Electrocore LLC is currently generating about -0.28 per unit of volatility. If you would invest  1,698  in Electrocore LLC on December 30, 2024 and sell it today you would lose (1,053) from holding Electrocore LLC or give up 62.01% of portfolio value over 90 days.

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

Aspira Womens Health  vs.  Electrocore LLC

Aspira Womens Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Aspira Womens Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite abnormal performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Electrocore LLC

Risk-Adjusted Performance

Very Weak

Over the last 90 days Electrocore LLC has generated negative risk-adjusted returns adding no value to investors with long positions. Even with unfluctuating performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in April 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Aspira Womens and Electrocore LLC

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

The idea behind Aspira Womens Health and Electrocore LLC 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.