Correlation Between Hologic and EON SE

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

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

Diversification Opportunities for Hologic and EON SE

-0.86

Correlation Coefficient

Hologic  EON SE

Pay attention - limited upside

The 3 months correlation between Hologic and EON is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding Hologic and EON SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EON SE and Hologic 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 Hologic are associated (or correlated) with EON SE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EON SE has no effect on the direction of Hologic i.e., Hologic and EON SE go up and down completely randomly.

Pair Corralation between Hologic and EON SE

Assuming the 90 days horizon Hologic is expected to under-perform the EON SE. In addition to that, Hologic is 1.43 times more volatile than EON SE. It trades about -0.16 of its total potential returns per unit of risk. EON SE is currently generating about 0.26 per unit of volatility. If you would invest  1,125  in EON SE on December 30, 2024 and sell it today you would earn a total of  261.00  from holding EON SE or generate 23.2% return on investment over 90 days.

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

Hologic  vs.  EON SE

Hologic

Risk-Adjusted Performance

Very Weak

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

EON SE

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in EON SE are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, EON SE exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hologic and EON SE

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

The idea behind Hologic and EON SE 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.