Correlation Between EPSILON HEALTHCARE and NEXON
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and NEXON 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 NEXON 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 NEXON Co, you can compare the effects of market volatilities on EPSILON HEALTHCARE and NEXON 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 NEXON. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and NEXON.
Diversification Opportunities for EPSILON HEALTHCARE and NEXON
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and NEXON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and NEXON Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXON 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 NEXON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXON has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and NEXON go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and NEXON
If you would invest 1,260 in NEXON Co on September 14, 2024 and sell it today you would earn a total of 110.00 from holding NEXON Co or generate 8.73% 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. NEXON Co
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| NEXON |
EPSILON HEALTHCARE and NEXON Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and NEXON
The main advantage of trading using opposite EPSILON HEALTHCARE and NEXON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, NEXON 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 NEXON will offset losses from the drop in NEXON's long position.| EPSILON HEALTHCARE vs. Merck Company | EPSILON HEALTHCARE vs. Elanco Animal Health | EPSILON HEALTHCARE vs. Superior Plus Corp | EPSILON HEALTHCARE vs. NMI Holdings |
| NEXON vs. FORMPIPE SOFTWARE AB | NEXON vs. EPSILON HEALTHCARE LTD | NEXON vs. UPDATE SOFTWARE | NEXON vs. Guidewire Software |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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