Correlation Between EGF Theramed and Itonis

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

By analyzing existing cross correlation between EGF Theramed Health and Itonis Inc, you can compare the effects of market volatilities on EGF Theramed and Itonis 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 EGF Theramed with a short position of Itonis. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGF Theramed and Itonis.

Diversification Opportunities for EGF Theramed and Itonis

0.19

Correlation Coefficient

EGF Theramed  Itonis

Average diversification

The 3 months correlation between EGF and Itonis is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding EGF Theramed Health and Itonis Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itonis Inc and EGF Theramed 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 EGF Theramed Health are associated (or correlated) with Itonis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itonis Inc has no effect on the direction of EGF Theramed i.e., EGF Theramed and Itonis go up and down completely randomly.

Pair Corralation between EGF Theramed and Itonis

Assuming the 90 days horizon EGF Theramed Health is expected to under-perform the Itonis. In addition to that, EGF Theramed is 2.0 times more volatile than Itonis Inc. It trades about -0.23 of its total potential returns per unit of risk. Itonis Inc is currently generating about -0.21 per unit of volatility. If you would invest  0.05  in Itonis Inc on August 30, 2025 and sell it today you would lose (0.01) from holding Itonis Inc or give up 20.0% of portfolio value over 90 days.

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

EGF Theramed Health  vs.  Itonis Inc

EGF Theramed Health

Risk-Adjusted Performance

Weakest

Over the last 90 days EGF Theramed Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's technical indicators remain nearly stable which may send shares a bit higher in December 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Itonis Inc

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Itonis Inc are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, Itonis unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EGF Theramed and Itonis

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

The idea behind EGF Theramed Health and Itonis Inc 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..