Correlation Between Eastwood Bio and Flow Beverage
Can any of the company-specific risk be diversified away by investing in both Eastwood Bio and Flow Beverage 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 Eastwood Bio and Flow Beverage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eastwood Bio Medical Canada and Flow Beverage Corp, you can compare the effects of market volatilities on Eastwood Bio and Flow Beverage 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 Eastwood Bio with a short position of Flow Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastwood Bio and Flow Beverage.
Diversification Opportunities for Eastwood Bio and Flow Beverage
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eastwood and Flow is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Eastwood Bio Medical Canada and Flow Beverage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Flow Beverage Corp and Eastwood Bio 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 Eastwood Bio Medical Canada are associated (or correlated) with Flow Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Flow Beverage Corp has no effect on the direction of Eastwood Bio i.e., Eastwood Bio and Flow Beverage go up and down completely randomly.
Pair Corralation between Eastwood Bio and Flow Beverage
Assuming the 90 days horizon Eastwood Bio is expected to generate 5.21 times less return on investment than Flow Beverage. In addition to that, Eastwood Bio is 4.26 times more volatile than Flow Beverage Corp. It trades about 0.0 of its total potential returns per unit of risk. Flow Beverage Corp is currently generating about 0.02 per unit of volatility. If you would invest 16.00 in Flow Beverage Corp on October 20, 2024 and sell it today you would earn a total of 0.00 from holding Flow Beverage Corp or generate 0.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Eastwood Bio Medical Canada vs. Flow Beverage Corp
Performance |
Timeline |
Eastwood Bio Medical |
Flow Beverage Corp |
Eastwood Bio and Flow Beverage Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Eastwood Bio and Flow Beverage
The main advantage of trading using opposite Eastwood Bio and Flow Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastwood Bio position performs unexpectedly, Flow Beverage 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 Flow Beverage will offset losses from the drop in Flow Beverage's long position.Eastwood Bio vs. Covalon Technologies | Eastwood Bio vs. Sirona Biochem Corp | Eastwood Bio vs. Medicure | Eastwood Bio vs. Arch Biopartners |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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