Correlation Between Emergent Health and CuraScientific Corp

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

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

Diversification Opportunities for Emergent Health and CuraScientific Corp

0.0

Correlation Coefficient

Emergent Health  CuraScientific Corp

Pay attention - limited upside

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

Pair Corralation between Emergent Health and CuraScientific Corp

If you would invest  0.00  in CuraScientific Corp on September 13, 2024 and sell it today you would earn a total of  0.00  from holding CuraScientific Corp or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Emergent Health Corp  vs.  CuraScientific Corp

Emergent Health Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Emergent Health Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest weak performance, the Stock's technical and fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

CuraScientific Corp

Risk-Adjusted Performance

0 of 100

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 current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Emergent Health and CuraScientific Corp

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

The idea behind Emergent Health Corp and CuraScientific 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.

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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 Global Correlations module to find global opportunities by holding instruments from different markets.