Correlation Between Collins Foods and EPSILON HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Collins Foods and EPSILON HEALTHCARE 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 Collins Foods and EPSILON HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Collins Foods Limited and EPSILON HEALTHCARE LTD, you can compare the effects of market volatilities on Collins Foods and EPSILON HEALTHCARE 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 Collins Foods with a short position of EPSILON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Collins Foods and EPSILON HEALTHCARE.
Diversification Opportunities for Collins Foods and EPSILON HEALTHCARE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Collins and EPSILON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Collins Foods Limited and EPSILON HEALTHCARE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPSILON HEALTHCARE LTD and Collins Foods 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 Collins Foods Limited are associated (or correlated) with EPSILON HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPSILON HEALTHCARE LTD has no effect on the direction of Collins Foods i.e., Collins Foods and EPSILON HEALTHCARE go up and down completely randomly.
Pair Corralation between Collins Foods and EPSILON HEALTHCARE
If you would invest 490.00 in Collins Foods Limited on September 3, 2024 and sell it today you would earn a total of 40.00 from holding Collins Foods Limited or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Collins Foods Limited vs. EPSILON HEALTHCARE LTD
Performance |
| Timeline |
| Collins Foods Limited |
| EPSILON HEALTHCARE LTD |
Collins Foods and EPSILON HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Collins Foods and EPSILON HEALTHCARE
The main advantage of trading using opposite Collins Foods and EPSILON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Collins Foods position performs unexpectedly, EPSILON HEALTHCARE 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 EPSILON HEALTHCARE will offset losses from the drop in EPSILON HEALTHCARE's long position.| Collins Foods vs. COMBA TELECOM SYST | Collins Foods vs. UNITED UTILITIES GR | Collins Foods vs. Chesapeake Utilities | Collins Foods vs. MTI WIRELESS EDGE |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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