Correlation Between Eventide Healthcare and Invesco Global

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

Diversification Opportunities for Eventide Healthcare and Invesco Global

0.96
  Correlation Coefficient

Almost no diversification

The 3 months correlation between Eventide and Invesco is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Eventide Healthcare Life and Invesco Global Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Invesco Global Health and Eventide Healthcare 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 Eventide Healthcare Life are associated (or correlated) with Invesco Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Invesco Global Health has no effect on the direction of Eventide Healthcare i.e., Eventide Healthcare and Invesco Global go up and down completely randomly.

Pair Corralation between Eventide Healthcare and Invesco Global

Assuming the 90 days horizon Eventide Healthcare Life is expected to generate 1.71 times more return on investment than Invesco Global. However, Eventide Healthcare is 1.71 times more volatile than Invesco Global Health. It trades about 0.44 of its potential returns per unit of risk. Invesco Global Health is currently generating about 0.17 per unit of risk. If you would invest  4,412  in Eventide Healthcare Life on September 8, 2025 and sell it today you would earn a total of  658.00  from holding Eventide Healthcare Life or generate 14.91% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Eventide Healthcare Life  vs.  Invesco Global Health

 Performance 
       Timeline  
Eventide Healthcare Life 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Eventide Healthcare Life are ranked lower than 22 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak technical indicators, Eventide Healthcare showed solid returns over the last few months and may actually be approaching a breakup point.
Invesco Global Health 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Invesco Global Health are ranked lower than 13 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Invesco Global may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Eventide Healthcare and Invesco Global Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Eventide Healthcare and Invesco Global

The main advantage of trading using opposite Eventide Healthcare and Invesco Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eventide Healthcare position performs unexpectedly, Invesco Global 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 Invesco Global will offset losses from the drop in Invesco Global's long position.
The idea behind Eventide Healthcare Life and Invesco Global Health 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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