Correlation Between EUDA Health and National Research

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

Diversification Opportunities for EUDA Health and National Research

-0.35

Correlation Coefficient

EUDA Health  National Research

Very good diversification

The 3 months correlation between EUDA and National is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding EUDA Health Holdings and National Research Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Research Corp 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 National Research. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Research Corp has no effect on the direction of EUDA Health i.e., EUDA Health and National Research go up and down completely randomly.

Pair Corralation between EUDA Health and National Research

Given the investment horizon of 90 days EUDA Health Holdings is expected to generate 2.37 times more return on investment than National Research. However, EUDA Health is 2.37 times more volatile than National Research Corp. It trades about 0.02 of its potential returns per unit of risk. National Research Corp is currently generating about -0.06 per unit of risk. If you would invest  456.00  in EUDA Health Holdings on August 31, 2024 and sell it today you would lose (24.00) from holding EUDA Health Holdings or give up 5.26% of portfolio value over 90 days.

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

EUDA Health Holdings  vs.  National Research Corp

EUDA Health Holdings

Risk-Adjusted Performance

1 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in EUDA Health Holdings are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat inconsistent fundamental indicators, EUDA Health may actually be approaching a critical reversion point that can send shares even higher in December 2024.

National Research Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days National Research Corp has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Stock's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

Pair Trading with EUDA Health and National Research

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

The idea behind EUDA Health Holdings and National Research 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.

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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.