Correlation Between ENDRA Life and Fonar

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

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

Diversification Opportunities for ENDRA Life and Fonar

0.61

Correlation Coefficient

ENDRA Life  Fonar

Poor diversification

The 3 months correlation between ENDRA and Fonar is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding ENDRA Life Sciences and Fonar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fonar and ENDRA Life 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 ENDRA Life Sciences are associated (or correlated) with Fonar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fonar has no effect on the direction of ENDRA Life i.e., ENDRA Life and Fonar go up and down completely randomly.

Pair Corralation between ENDRA Life and Fonar

Given the investment horizon of 90 days ENDRA Life Sciences is expected to under-perform the Fonar. In addition to that, ENDRA Life is 2.45 times more volatile than Fonar. It trades about -0.12 of its total potential returns per unit of risk. Fonar is currently generating about -0.05 per unit of volatility. If you would invest  1,498  in Fonar on December 28, 2024 and sell it today you would lose (90.00) from holding Fonar or give up 6.01% of portfolio value over 90 days.

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

ENDRA Life Sciences  vs.  Fonar

ENDRA Life Sciences

Risk-Adjusted Performance

Very Weak

Over the last 90 days ENDRA Life Sciences 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.

Fonar

Risk-Adjusted Performance

Very Weak

Over the last 90 days Fonar has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable basic indicators, Fonar is not utilizing all of its potentials. The latest stock price agitation, may contribute to short-term losses for the retail investors.

Pair Trading with ENDRA Life and Fonar

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

The idea behind ENDRA Life Sciences and Fonar 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.