Correlation Between EUDA Health and Avinger

Can any of the company-specific risk be diversified away by investing in both EUDA Health and Avinger 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 Avinger 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 Avinger, you can compare the effects of market volatilities on EUDA Health and Avinger 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 Avinger. Check out your portfolio center. Please also check ongoing floating volatility patterns of EUDA Health and Avinger.

Diversification Opportunities for EUDA Health and Avinger

-0.58

Correlation Coefficient

EUDA Health  Avinger

Excellent diversification

The 3 months correlation between EUDA and Avinger is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding EUDA Health Holdings and Avinger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avinger 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 Avinger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avinger has no effect on the direction of EUDA Health i.e., EUDA Health and Avinger go up and down completely randomly.

Pair Corralation between EUDA Health and Avinger

Given the investment horizon of 90 days EUDA Health Holdings is expected to generate 0.91 times more return on investment than Avinger. However, EUDA Health Holdings is 1.09 times less risky than Avinger. It trades about 0.07 of its potential returns per unit of risk. Avinger is currently generating about -0.01 per unit of risk. If you would invest  374.00  in EUDA Health Holdings on September 5, 2024 and sell it today you would earn a total of  57.00  from holding EUDA Health Holdings or generate 15.24% return on investment over 90 days.

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

EUDA Health Holdings  vs.  Avinger

EUDA Health Holdings

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in EUDA Health Holdings are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak fundamental indicators, EUDA Health sustained solid returns over the last few months and may actually be approaching a breakup point.

Avinger

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Avinger has generated negative risk-adjusted returns adding no value to investors with long positions. Even with relatively invariable technical and fundamental indicators, Avinger 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 EUDA Health and Avinger

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

The idea behind EUDA Health Holdings and Avinger 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.