Correlation Between EPSILON HEALTHCARE and NORDHEALTH
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and NORDHEALTH 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 NORDHEALTH 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 NORDHEALTH AS NK, you can compare the effects of market volatilities on EPSILON HEALTHCARE and NORDHEALTH 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 NORDHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and NORDHEALTH.
Diversification Opportunities for EPSILON HEALTHCARE and NORDHEALTH
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and NORDHEALTH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and NORDHEALTH AS NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDHEALTH AS NK 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 NORDHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDHEALTH AS NK has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and NORDHEALTH go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and NORDHEALTH
If you would invest 281.00 in NORDHEALTH AS NK on August 31, 2024 and sell it today you would earn a total of 13.00 from holding NORDHEALTH AS NK or generate 4.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. NORDHEALTH AS NK
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| NORDHEALTH AS NK |
EPSILON HEALTHCARE and NORDHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and NORDHEALTH
The main advantage of trading using opposite EPSILON HEALTHCARE and NORDHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, NORDHEALTH 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 NORDHEALTH will offset losses from the drop in NORDHEALTH's long position.| EPSILON HEALTHCARE vs. Takeda Pharmaceutical | EPSILON HEALTHCARE vs. Superior Plus Corp | EPSILON HEALTHCARE vs. Origin Agritech | EPSILON HEALTHCARE vs. Identiv |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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