Correlation Between Evertz Technologies and Femasys

Can any of the company-specific risk be diversified away by investing in both Evertz Technologies and Femasys 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 Femasys 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 Femasys, you can compare the effects of market volatilities on Evertz Technologies and Femasys 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 Femasys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evertz Technologies and Femasys.

Diversification Opportunities for Evertz Technologies and Femasys

0.07

Correlation Coefficient

Evertz Technologies  Femasys

Significant diversification

The 3 months correlation between Evertz and Femasys is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Evertz Technologies Limited and Femasys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Femasys 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 Femasys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Femasys has no effect on the direction of Evertz Technologies i.e., Evertz Technologies and Femasys go up and down completely randomly.

Pair Corralation between Evertz Technologies and Femasys

Assuming the 90 days horizon Evertz Technologies Limited is expected to under-perform the Femasys. But the pink sheet apears to be less risky and, when comparing its historical volatility, Evertz Technologies Limited is 2.21 times less risky than Femasys. The pink sheet trades about -0.1 of its potential returns per unit of risk. The Femasys is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  114.00  in Femasys on October 8, 2024 and sell it today you would lose (2.00) from holding Femasys or give up 1.75% of portfolio value over 90 days.

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

Evertz Technologies Limited  vs.  Femasys

Evertz Technologies

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Evertz Technologies Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Evertz Technologies is not utilizing all of its potentials. The latest stock price disturbance, may contribute to mid-run losses for the stockholders.

Femasys

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Femasys are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong primary indicators, Femasys is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Evertz Technologies and Femasys

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

The idea behind Evertz Technologies Limited and Femasys 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.