Correlation Between Evertz Technologies and Biocardia

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

Diversification Opportunities for Evertz Technologies and Biocardia

-0.45
  Correlation Coefficient

Very good diversification

The 3 months correlation between Evertz and Biocardia is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Evertz Technologies Limited and Biocardia in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biocardia and Evertz 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 Evertz Technologies Limited are associated (or correlated) with Biocardia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biocardia has no effect on the direction of Evertz Technologies i.e., Evertz Technologies and Biocardia go up and down completely randomly.

Pair Corralation between Evertz Technologies and Biocardia

Assuming the 90 days horizon Evertz Technologies Limited is expected to under-perform the Biocardia. But the pink sheet apears to be less risky and, when comparing its historical volatility, Evertz Technologies Limited is 2.7 times less risky than Biocardia. The pink sheet trades about -0.07 of its potential returns per unit of risk. The Biocardia is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest  246.00  in Biocardia on December 27, 2024 and sell it today you would earn a total of  9.00  from holding Biocardia or generate 3.66% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy95.24%
ValuesDaily Returns

Evertz Technologies Limited  vs.  Biocardia

 Performance 
       Timeline  
Evertz Technologies 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Evertz Technologies Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.
Biocardia 

Risk-Adjusted Performance

Modest

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Biocardia are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady fundamental indicators, Biocardia may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Evertz Technologies and Biocardia Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Evertz Technologies and Biocardia

The main advantage of trading using opposite Evertz Technologies and Biocardia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evertz Technologies position performs unexpectedly, Biocardia 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 Biocardia will offset losses from the drop in Biocardia's long position.
The idea behind Evertz Technologies Limited and Biocardia 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 Commodity Directory module to find actively traded commodities issued by global exchanges.

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