Correlation Between EPSILON HEALTHCARE and Collins Foods
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and Collins Foods 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 Collins Foods 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 Collins Foods Limited, you can compare the effects of market volatilities on EPSILON HEALTHCARE and Collins Foods 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 Collins Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and Collins Foods.
Diversification Opportunities for EPSILON HEALTHCARE and Collins Foods
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and Collins is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and Collins Foods Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Collins Foods Limited 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 Collins Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Collins Foods Limited has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and Collins Foods go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and Collins Foods
If you would invest 549.00 in Collins Foods Limited on September 3, 2024 and sell it today you would lose (19.00) from holding Collins Foods Limited or give up 3.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. Collins Foods Limited
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| Collins Foods Limited |
EPSILON HEALTHCARE and Collins Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and Collins Foods
The main advantage of trading using opposite EPSILON HEALTHCARE and Collins Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, Collins Foods 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 Collins Foods will offset losses from the drop in Collins Foods' long position.| EPSILON HEALTHCARE vs. Scientific Games | EPSILON HEALTHCARE vs. Entravision Communications | EPSILON HEALTHCARE vs. Zoom Video Communications | EPSILON HEALTHCARE vs. China Communications Services |
| Collins Foods vs. COMBA TELECOM SYST | Collins Foods vs. UNITED UTILITIES GR | Collins Foods vs. Chesapeake Utilities | Collins Foods vs. MTI WIRELESS EDGE |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |