Correlation Between Escalon Medical and NAYA Biosciences,

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

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

Diversification Opportunities for Escalon Medical and NAYA Biosciences,

0.0

Correlation Coefficient

Escalon Medical  NAYA Biosciences,

Pay attention - limited upside

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

Pair Corralation between Escalon Medical and NAYA Biosciences,

If you would invest (100.00) in Escalon Medical Corp on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Escalon Medical Corp or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Escalon Medical Corp  vs.  NAYA Biosciences,

Escalon Medical Corp

Risk-Adjusted Performance

Very Weak

Over the last 90 days Escalon Medical Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, Escalon Medical is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

NAYA Biosciences,

Risk-Adjusted Performance

Very Weak

Over the last 90 days NAYA Biosciences, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in April 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Escalon Medical and NAYA Biosciences,

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

The idea behind Escalon Medical Corp and NAYA Biosciences, 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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.