Correlation Between Haoxi Health and E W

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

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

Diversification Opportunities for Haoxi Health and E W

0.18

Correlation Coefficient

Haoxi Health  E W

Average diversification

The 3 months correlation between Haoxi and SSP is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Haoxi Health Technology and E W Scripps in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on E W Scripps and Haoxi 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 Haoxi Health Technology are associated (or correlated) with E W. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of E W Scripps has no effect on the direction of Haoxi Health i.e., Haoxi Health and E W go up and down completely randomly.

Pair Corralation between Haoxi Health and E W

Considering the 90-day investment horizon Haoxi Health Technology is expected to under-perform the E W. In addition to that, Haoxi Health is 1.04 times more volatile than E W Scripps. It trades about -0.06 of its total potential returns per unit of risk. E W Scripps is currently generating about 0.12 per unit of volatility. If you would invest  204.00  in E W Scripps on December 26, 2024 and sell it today you would earn a total of  120.00  from holding E W Scripps or generate 58.82% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Haoxi Health Technology  vs.  E W Scripps

Haoxi Health Technology

Risk-Adjusted Performance

Very Weak

Over the last 90 days Haoxi Health Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

E W Scripps

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in E W Scripps are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Even with relatively inconsistent basic indicators, E W reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Haoxi Health and E W

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

The idea behind Haoxi Health Technology and E W Scripps 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.