Correlation Between Baxter International and Elevai Labs,

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

By analyzing existing cross correlation between Baxter International and Elevai Labs, Common, you can compare the effects of market volatilities on Baxter International and Elevai Labs, 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 Baxter International with a short position of Elevai Labs,. Check out your portfolio center. Please also check ongoing floating volatility patterns of Baxter International and Elevai Labs,.

Diversification Opportunities for Baxter International and Elevai Labs,

0.8

Correlation Coefficient

Baxter International  Elevai Labs,

Very poor diversification

The 3 months correlation between Baxter and Elevai is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Baxter International and Elevai Labs, Common in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elevai Labs, Common and Baxter International 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 Baxter International are associated (or correlated) with Elevai Labs,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elevai Labs, Common has no effect on the direction of Baxter International i.e., Baxter International and Elevai Labs, go up and down completely randomly.

Pair Corralation between Baxter International and Elevai Labs,

Considering the 90-day investment horizon Baxter International is expected to generate 0.1 times more return on investment than Elevai Labs,. However, Baxter International is 10.02 times less risky than Elevai Labs,. It trades about -0.21 of its potential returns per unit of risk. Elevai Labs, Common is currently generating about -0.22 per unit of risk. If you would invest  3,918  in Baxter International on September 12, 2024 and sell it today you would lose (774.00) from holding Baxter International or give up 19.75% of portfolio value over 90 days.

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

Baxter International  vs.  Elevai Labs, Common

Baxter International

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Baxter International has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Elevai Labs, Common

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Elevai Labs, Common has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Baxter International and Elevai Labs,

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

The idea behind Baxter International and Elevai Labs, Common 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.