Correlation Between Epitomee Medical and Intercure

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

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

Diversification Opportunities for Epitomee Medical and Intercure

-0.56

Correlation Coefficient

Epitomee Medical  Intercure

Excellent diversification

The 3 months correlation between Epitomee and Intercure is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Epitomee Medical and Intercure in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intercure and Epitomee Medical 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 Epitomee Medical are associated (or correlated) with Intercure. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intercure has no effect on the direction of Epitomee Medical i.e., Epitomee Medical and Intercure go up and down completely randomly.

Pair Corralation between Epitomee Medical and Intercure

Assuming the 90 days trading horizon Epitomee Medical is expected to generate 3.56 times less return on investment than Intercure. In addition to that, Epitomee Medical is 1.2 times more volatile than Intercure. It trades about 0.05 of its total potential returns per unit of risk. Intercure is currently generating about 0.23 per unit of volatility. If you would invest  49,200  in Intercure on September 28, 2024 and sell it today you would earn a total of  12,300  from holding Intercure or generate 25.0% return on investment over 90 days.

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

Epitomee Medical  vs.  Intercure

Epitomee Medical

Risk-Adjusted Performance

4 of 100

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Epitomee Medical are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Epitomee Medical sustained solid returns over the last few months and may actually be approaching a breakup point.

Intercure

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Intercure has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with Epitomee Medical and Intercure

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

The idea behind Epitomee Medical and Intercure 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.