Correlation Between Endymed and Target

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Endymed and Target 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 Endymed and Target into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Endymed and Target, you can compare the effects of market volatilities on Endymed and Target 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 Endymed with a short position of Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Endymed and Target.

Diversification Opportunities for Endymed and Target

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between Endymed and Target is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Endymed and Target in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Target and Endymed 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 Endymed are associated (or correlated) with Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Target has no effect on the direction of Endymed i.e., Endymed and Target go up and down completely randomly.

Pair Corralation between Endymed and Target

If you would invest  14,137  in Target on December 29, 2023 and sell it today you would earn a total of  3,584  from holding Target or generate 25.35% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy1.61%
ValuesDaily Returns

Endymed  vs.  Target

 Performance 
       Timeline  
Endymed 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Endymed has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Endymed is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
Target 

Risk-Adjusted Performance

14 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Target are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, Target unveiled solid returns over the last few months and may actually be approaching a breakup point.

Endymed and Target Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Endymed and Target

The main advantage of trading using opposite Endymed and Target positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Endymed position performs unexpectedly, Target 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 Target will offset losses from the drop in Target's long position.
The idea behind Endymed and Target 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.

Other Complementary Tools

Watchlist Optimization
Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm
Aroon Oscillator
Analyze current equity momentum using Aroon Oscillator and other momentum ratios
USA ETFs
Find actively traded Exchange Traded Funds (ETF) in USA
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Positions Ratings
Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance
Analyst Advice
Analyst recommendations and target price estimates broken down by several categories
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Top Crypto Exchanges
Search and analyze digital assets across top global cryptocurrency exchanges
Transaction History
View history of all your transactions and understand their impact on performance