Correlation Between Fortress Biotech and EUDA Health

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

By analyzing existing cross correlation between Fortress Biotech Pref and EUDA Health Holdings, you can compare the effects of market volatilities on Fortress Biotech and EUDA Health 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 Fortress Biotech with a short position of EUDA Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fortress Biotech and EUDA Health.

Diversification Opportunities for Fortress Biotech and EUDA Health

-0.45

Correlation Coefficient

Fortress Biotech  EUDA Health

Very good diversification

The 3 months correlation between Fortress and EUDA is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Fortress Biotech Pref and EUDA Health Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EUDA Health Holdings and Fortress Biotech 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 Fortress Biotech Pref are associated (or correlated) with EUDA Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EUDA Health Holdings has no effect on the direction of Fortress Biotech i.e., Fortress Biotech and EUDA Health go up and down completely randomly.

Pair Corralation between Fortress Biotech and EUDA Health

Assuming the 90 days horizon Fortress Biotech Pref is expected to generate 1.11 times more return on investment than EUDA Health. However, Fortress Biotech is 1.11 times more volatile than EUDA Health Holdings. It trades about 0.04 of its potential returns per unit of risk. EUDA Health Holdings is currently generating about -0.07 per unit of risk. If you would invest  660.00  in Fortress Biotech Pref on May 4, 2025 and sell it today you would earn a total of  33.00  from holding Fortress Biotech Pref or generate 5.0% return on investment over 90 days.

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

Fortress Biotech Pref  vs.  EUDA Health Holdings

Fortress Biotech Pref

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Fortress Biotech Pref are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating basic indicators, Fortress Biotech may actually be approaching a critical reversion point that can send shares even higher in September 2025.

EUDA Health Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days EUDA Health Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Stock's fundamental indicators remain somewhat strong which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Fortress Biotech and EUDA Health

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

The idea behind Fortress Biotech Pref and EUDA Health Holdings 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.