Correlation Between EPSILON HEALTHCARE and Brockhaus Capital
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and Brockhaus Capital 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 Brockhaus Capital 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 Brockhaus Capital Management, you can compare the effects of market volatilities on EPSILON HEALTHCARE and Brockhaus Capital 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 Brockhaus Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and Brockhaus Capital.
Diversification Opportunities for EPSILON HEALTHCARE and Brockhaus Capital
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and Brockhaus is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and Brockhaus Capital Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Brockhaus Capital 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 Brockhaus Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Brockhaus Capital has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and Brockhaus Capital go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and Brockhaus Capital
Assuming the 90 days trading horizon EPSILON HEALTHCARE LTD is expected to generate 5.13 times more return on investment than Brockhaus Capital. However, EPSILON HEALTHCARE is 5.13 times more volatile than Brockhaus Capital Management. It trades about 0.05 of its potential returns per unit of risk. Brockhaus Capital Management is currently generating about 0.01 per unit of risk. If you would invest 0.95 in EPSILON HEALTHCARE LTD on September 12, 2024 and sell it today you would lose (0.20) from holding EPSILON HEALTHCARE LTD or give up 21.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. Brockhaus Capital Management
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| Brockhaus Capital |
EPSILON HEALTHCARE and Brockhaus Capital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and Brockhaus Capital
The main advantage of trading using opposite EPSILON HEALTHCARE and Brockhaus Capital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, Brockhaus Capital 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 Brockhaus Capital will offset losses from the drop in Brockhaus Capital'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 |
| Brockhaus Capital vs. Ameriprise Financial | Brockhaus Capital vs. Ares Management Corp | Brockhaus Capital vs. Superior Plus Corp | Brockhaus Capital vs. SIVERS SEMICONDUCTORS AB |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |