Correlation Between Electromedical Technologies and Vivos

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

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

Diversification Opportunities for Electromedical Technologies and Vivos

0.58

Correlation Coefficient

Electromedical Technologies  Vivos

Very weak diversification

The 3 months correlation between Electromedical and Vivos is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Electromedical Technologies and Vivos Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vivos Inc and Electromedical Technologies 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 Electromedical Technologies are associated (or correlated) with Vivos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vivos Inc has no effect on the direction of Electromedical Technologies i.e., Electromedical Technologies and Vivos go up and down completely randomly.

Pair Corralation between Electromedical Technologies and Vivos

Given the investment horizon of 90 days Electromedical Technologies is expected to generate 2.12 times more return on investment than Vivos. However, Electromedical Technologies is 2.12 times more volatile than Vivos Inc. It trades about 0.03 of its potential returns per unit of risk. Vivos Inc is currently generating about 0.05 per unit of risk. If you would invest  0.60  in Electromedical Technologies on September 23, 2024 and sell it today you would lose (0.57) from holding Electromedical Technologies or give up 95.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	99.8%
Values	Daily Returns

Electromedical Technologies  vs.  Vivos Inc

Electromedical Technologies

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Electromedical Technologies are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unfluctuating technical and fundamental indicators, Electromedical Technologies exhibited solid returns over the last few months and may actually be approaching a breakup point.

Vivos Inc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Vivos Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in January 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Electromedical Technologies and Vivos

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

The idea behind Electromedical Technologies and Vivos 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.

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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.