Correlation Between Electrocore LLC and Owlet

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Electrocore LLC and Owlet 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 Electrocore LLC and Owlet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electrocore LLC and Owlet Inc, you can compare the effects of market volatilities on Electrocore LLC and Owlet 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 Electrocore LLC with a short position of Owlet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electrocore LLC and Owlet.

Diversification Opportunities for Electrocore LLC and Owlet

-0.33
  Correlation Coefficient

Very good diversification

The 3 months correlation between Electrocore and Owlet is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Electrocore LLC and Owlet Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Owlet Inc and Electrocore LLC 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 Electrocore LLC are associated (or correlated) with Owlet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Owlet Inc has no effect on the direction of Electrocore LLC i.e., Electrocore LLC and Owlet go up and down completely randomly.

Pair Corralation between Electrocore LLC and Owlet

Given the investment horizon of 90 days Electrocore LLC is expected to under-perform the Owlet. In addition to that, Electrocore LLC is 1.93 times more volatile than Owlet Inc. It trades about -0.13 of its total potential returns per unit of risk. Owlet Inc is currently generating about -0.25 per unit of volatility. If you would invest  464.00  in Owlet Inc on October 22, 2024 and sell it today you would lose (38.00) from holding Owlet Inc or give up 8.19% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Electrocore LLC  vs.  Owlet Inc

 Performance 
       Timeline  
Electrocore LLC 

Risk-Adjusted Performance

12 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Electrocore LLC are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Electrocore LLC reported solid returns over the last few months and may actually be approaching a breakup point.
Owlet Inc 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Owlet Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's essential indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Electrocore LLC and Owlet Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Electrocore LLC and Owlet

The main advantage of trading using opposite Electrocore LLC and Owlet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electrocore LLC position performs unexpectedly, Owlet 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 Owlet will offset losses from the drop in Owlet's long position.
The idea behind Electrocore LLC and Owlet Inc 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

Other Complementary Tools

Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Investing Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Sign In To Macroaxis
Sign in to explore Macroaxis' wealth optimization platform and fintech modules
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes