Correlation Between EUDA Health and Astrana Health
Can any of the company-specific risk be diversified away by investing in both EUDA Health and Astrana 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 EUDA Health and Astrana Health into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EUDA Health Holdings and Astrana Health, you can compare the effects of market volatilities on EUDA Health and Astrana 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 EUDA Health with a short position of Astrana Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of EUDA Health and Astrana Health.
Diversification Opportunities for EUDA Health and Astrana Health
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EUDA and Astrana is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding EUDA Health Holdings and Astrana Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astrana Health and EUDA Health 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 EUDA Health Holdings are associated (or correlated) with Astrana Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astrana Health has no effect on the direction of EUDA Health i.e., EUDA Health and Astrana Health go up and down completely randomly.
Pair Corralation between EUDA Health and Astrana Health
Given the investment horizon of 90 days EUDA Health Holdings is expected to generate 1.68 times more return on investment than Astrana Health. However, EUDA Health is 1.68 times more volatile than Astrana Health. It trades about 0.04 of its potential returns per unit of risk. Astrana Health is currently generating about -0.21 per unit of risk. If you would invest 384.00 in EUDA Health Holdings on September 25, 2024 and sell it today you would earn a total of 22.00 from holding EUDA Health Holdings or generate 5.73% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
EUDA Health Holdings vs. Astrana Health
Performance |
Timeline |
EUDA Health Holdings |
Astrana Health |
EUDA Health and Astrana Health Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EUDA Health and Astrana Health
The main advantage of trading using opposite EUDA Health and Astrana Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EUDA Health position performs unexpectedly, Astrana 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 Astrana Health will offset losses from the drop in Astrana Health's long position.EUDA Health vs. Cigna Corp | EUDA Health vs. Definitive Healthcare Corp | EUDA Health vs. Guardant Health | EUDA Health vs. Laboratory of |
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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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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