Correlation Between Quidel and EUDA Health

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

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

Diversification Opportunities for Quidel and EUDA Health

-0.5

Correlation Coefficient

Quidel  EUDA Health

Very good diversification

The 3 months correlation between Quidel and EUDA is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Quidel 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 Quidel 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 Quidel 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 Quidel i.e., Quidel and EUDA Health go up and down completely randomly.

Pair Corralation between Quidel and EUDA Health

If you would invest  27.00  in EUDA Health Holdings on January 28, 2024 and sell it today you would earn a total of  0.00  from holding EUDA Health Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	28.57%
Values	Daily Returns

Quidel  vs.  EUDA Health Holdings

Quidel

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Quidel has generated negative risk-adjusted returns adding no value to investors with long positions. Despite conflicting performance in the last few months, the Stock's technical and fundamental indicators remain quite persistent which may send shares a bit higher in May 2024. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

EUDA Health Holdings

Risk-Adjusted Performance

0 of 100

Solid

Over the last 90 days EUDA Health Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly conflicting basic indicators, EUDA Health showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Quidel and EUDA Health

The main advantage of trading using opposite Quidel and EUDA Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quidel 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 Quidel 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.