Correlation Between SSIC Old and Entourage Health

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

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

Diversification Opportunities for SSIC Old and Entourage Health

-0.51

Correlation Coefficient

SSIC Old  Entourage Health

Excellent diversification

The 3 months correlation between SSIC and Entourage is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding SSIC Old and Entourage Health Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Entourage Health Corp and SSIC Old 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 SSIC Old are associated (or correlated) with Entourage Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Entourage Health Corp has no effect on the direction of SSIC Old i.e., SSIC Old and Entourage Health go up and down completely randomly.

Pair Corralation between SSIC Old and Entourage Health

If you would invest  1,283  in SSIC Old on October 9, 2024 and sell it today you would earn a total of  0.00  from holding SSIC Old or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	5.26%
Values	Daily Returns

SSIC Old  vs.  Entourage Health Corp

SSIC Old

Risk-Adjusted Performance

0 of 100

Weak

Over the last 90 days SSIC Old has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound forward indicators, SSIC Old is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Entourage Health Corp

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Entourage Health Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, Entourage Health reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with SSIC Old and Entourage Health

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

The idea behind SSIC Old and Entourage Health Corp 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.