Correlation Between Evofem Biosciences and Vaso Corp

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

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

Diversification Opportunities for Evofem Biosciences and Vaso Corp

-0.62

Correlation Coefficient

Evofem Biosciences  Vaso Corp

Excellent diversification

The 3 months correlation between Evofem and Vaso is -0.62. Overlapping area represents the amount of risk that can be diversified away by holding Evofem Biosciences and Vaso Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vaso Corp and Evofem Biosciences 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 Evofem Biosciences are associated (or correlated) with Vaso Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vaso Corp has no effect on the direction of Evofem Biosciences i.e., Evofem Biosciences and Vaso Corp go up and down completely randomly.

Pair Corralation between Evofem Biosciences and Vaso Corp

If you would invest  27.00  in Vaso Corp on August 31, 2024 and sell it today you would earn a total of  0.00  from holding Vaso Corp or generate 0.0% return on investment over 90 days.

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

Evofem Biosciences  vs.  Vaso Corp

Evofem Biosciences

Risk-Adjusted Performance

0 of 100

Very Weak

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

Vaso Corp

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Evofem Biosciences and Vaso Corp

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

The idea behind Evofem Biosciences and Vaso 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.

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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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.