Correlation Between Etao International and Sharecare

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

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

Diversification Opportunities for Etao International and Sharecare

-0.31

Correlation Coefficient

Etao International  Sharecare

Very good diversification

The 3 months correlation between Etao and Sharecare is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Etao International Co, and Sharecare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharecare and Etao International 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 Etao International Co, are associated (or correlated) with Sharecare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharecare has no effect on the direction of Etao International i.e., Etao International and Sharecare go up and down completely randomly.

Pair Corralation between Etao International and Sharecare

If you would invest  5.00  in Etao International Co, on September 3, 2024 and sell it today you would earn a total of  0.00  from holding Etao International Co, or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	2.7%
Values	Daily Returns

Etao International Co,  vs.  Sharecare

Etao International Co,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Etao International Co, has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, Etao International is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Sharecare

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Sharecare has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Sharecare is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Etao International and Sharecare

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

The idea behind Etao International Co, and Sharecare 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.