Correlation Between CuraScientific Corp and Emergent Health

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

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

Diversification Opportunities for CuraScientific Corp and Emergent Health

0.0

Correlation Coefficient

CuraScientific Corp  Emergent Health

Pay attention - limited upside

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

Pair Corralation between CuraScientific Corp and Emergent Health

Given the investment horizon of 90 days CuraScientific Corp is expected to under-perform the Emergent Health. But the pink sheet apears to be less risky and, when comparing its historical volatility, CuraScientific Corp is 1.07 times less risky than Emergent Health. The pink sheet trades about -0.09 of its potential returns per unit of risk. The Emergent Health Corp is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  0.21  in Emergent Health Corp on October 21, 2024 and sell it today you would lose (0.12) from holding Emergent Health Corp or give up 57.14% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.41%
Values	Daily Returns

CuraScientific Corp  vs.  Emergent Health Corp

CuraScientific Corp

Risk-Adjusted Performance

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Very Weak

Over the last 90 days CuraScientific Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, CuraScientific Corp is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Emergent Health Corp

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Emergent Health Corp are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak technical and fundamental indicators, Emergent Health may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with CuraScientific Corp and Emergent Health

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

The idea behind CuraScientific Corp and Emergent Health Corp 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.