Correlation Between EPSILON HEALTHCARE and Federal Agricultural
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and Federal Agricultural 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 Federal Agricultural 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 Federal Agricultural Mortgage, you can compare the effects of market volatilities on EPSILON HEALTHCARE and Federal Agricultural 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 Federal Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and Federal Agricultural.
Diversification Opportunities for EPSILON HEALTHCARE and Federal Agricultural
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and Federal is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and Federal Agricultural Mortgage in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Agricultural 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 Federal Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Agricultural has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and Federal Agricultural go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and Federal Agricultural
If you would invest 16,485 in Federal Agricultural Mortgage on October 18, 2024 and sell it today you would earn a total of 1,415 from holding Federal Agricultural Mortgage or generate 8.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.77% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. Federal Agricultural Mortgage
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| Federal Agricultural |
EPSILON HEALTHCARE and Federal Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and Federal Agricultural
The main advantage of trading using opposite EPSILON HEALTHCARE and Federal Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, Federal Agricultural 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 Federal Agricultural will offset losses from the drop in Federal Agricultural's long position.| EPSILON HEALTHCARE vs. AUSNUTRIA DAIRY | EPSILON HEALTHCARE vs. The Japan Steel | EPSILON HEALTHCARE vs. Ultra Clean Holdings | EPSILON HEALTHCARE vs. TYSON FOODS A |
| Federal Agricultural vs. Cardinal Health | Federal Agricultural vs. EPSILON HEALTHCARE LTD | Federal Agricultural vs. CARDINAL HEALTH | Federal Agricultural vs. Acadia Healthcare |
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 Stocks Directory module to find actively traded stocks across global markets.
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