Correlation Between EPSILON HEALTHCARE and SANOK RUBBER
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and SANOK RUBBER 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 EPSILON HEALTHCARE and SANOK RUBBER into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EPSILON HEALTHCARE LTD and SANOK RUBBER ZY, you can compare the effects of market volatilities on EPSILON HEALTHCARE and SANOK RUBBER 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 EPSILON HEALTHCARE with a short position of SANOK RUBBER. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and SANOK RUBBER.
Diversification Opportunities for EPSILON HEALTHCARE and SANOK RUBBER
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and SANOK is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and SANOK RUBBER ZY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SANOK RUBBER ZY and EPSILON 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 EPSILON HEALTHCARE LTD are associated (or correlated) with SANOK RUBBER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SANOK RUBBER ZY has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and SANOK RUBBER go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and SANOK RUBBER
If you would invest 434.00 in SANOK RUBBER ZY on September 22, 2024 and sell it today you would earn a total of 21.00 from holding SANOK RUBBER ZY or generate 4.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. SANOK RUBBER ZY
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| SANOK RUBBER ZY |
EPSILON HEALTHCARE and SANOK RUBBER Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and SANOK RUBBER
The main advantage of trading using opposite EPSILON HEALTHCARE and SANOK RUBBER positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, SANOK RUBBER 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 SANOK RUBBER will offset losses from the drop in SANOK RUBBER's long position.| EPSILON HEALTHCARE vs. Public Storage | EPSILON HEALTHCARE vs. Datalogic SpA | EPSILON HEALTHCARE vs. Arrow Electronics | EPSILON HEALTHCARE vs. Nucletron Electronic Aktiengesellschaft |
| SANOK RUBBER vs. GFL ENVIRONM | SANOK RUBBER vs. Autohome ADR | SANOK RUBBER vs. Focus Home Interactive | SANOK RUBBER vs. Perma Fix Environmental Services |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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