Correlation Between CeCors and Wearable Health

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

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

Diversification Opportunities for CeCors and Wearable Health

0.0

Correlation Coefficient

CeCors  Wearable Health

Pay attention - limited upside

The 3 months correlation between CeCors and Wearable is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CeCors Inc and Wearable Health Solutions in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wearable Health Solutions and CeCors 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 CeCors Inc are associated (or correlated) with Wearable Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wearable Health Solutions has no effect on the direction of CeCors i.e., CeCors and Wearable Health go up and down completely randomly.

Pair Corralation between CeCors and Wearable Health

If you would invest  3.11  in CeCors Inc on September 4, 2024 and sell it today you would lose (0.41) from holding CeCors Inc or give up 13.18% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

CeCors Inc  vs.  Wearable Health Solutions

CeCors Inc

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CeCors Inc are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, CeCors unveiled solid returns over the last few months and may actually be approaching a breakup point.

Wearable Health Solutions

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Wearable Health Solutions has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Wearable Health is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with CeCors and Wearable Health

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

The idea behind CeCors Inc and Wearable Health Solutions 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.