Correlation Between Emmaus Life and FLDM
Can any of the company-specific risk be diversified away by investing in both Emmaus Life and FLDM 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 Emmaus Life and FLDM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emmaus Life Sciences and FLDM, you can compare the effects of market volatilities on Emmaus Life and FLDM 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 Emmaus Life with a short position of FLDM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emmaus Life and FLDM.
Diversification Opportunities for Emmaus Life and FLDM
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Emmaus and FLDM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Emmaus Life Sciences and FLDM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FLDM and Emmaus Life 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 Emmaus Life Sciences are associated (or correlated) with FLDM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FLDM has no effect on the direction of Emmaus Life i.e., Emmaus Life and FLDM go up and down completely randomly.
Pair Corralation between Emmaus Life and FLDM
If you would invest 32.00 in Emmaus Life Sciences on January 26, 2024 and sell it today you would lose (19.00) from holding Emmaus Life Sciences or give up 59.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Emmaus Life Sciences vs. FLDM
Performance |
| Timeline |
| Emmaus Life Sciences |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| FLDM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Emmaus Life and FLDM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emmaus Life and FLDM
The main advantage of trading using opposite Emmaus Life and FLDM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emmaus Life position performs unexpectedly, FLDM 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 FLDM will offset losses from the drop in FLDM's long position.| Emmaus Life vs. NRx Pharmaceuticals | Emmaus Life vs. Cell Source | Emmaus Life vs. Anebulo Pharmaceuticals | Emmaus Life vs. Adagene |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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