Correlation Between EPSILON HEALTHCARE and Check Point
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and Check Point 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 Check Point 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 Check Point Software, you can compare the effects of market volatilities on EPSILON HEALTHCARE and Check Point 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 Check Point. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and Check Point.
Diversification Opportunities for EPSILON HEALTHCARE and Check Point
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and Check is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and Check Point Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Check Point Software 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 Check Point. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Check Point Software has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and Check Point go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and Check Point
If you would invest 17,080 in Check Point Software on September 27, 2024 and sell it today you would earn a total of 950.00 from holding Check Point Software or generate 5.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. Check Point Software
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| Check Point Software |
EPSILON HEALTHCARE and Check Point Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and Check Point
The main advantage of trading using opposite EPSILON HEALTHCARE and Check Point positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, Check Point 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 Check Point will offset losses from the drop in Check Point's long position.| EPSILON HEALTHCARE vs. Lery Seafood Group | EPSILON HEALTHCARE vs. Coffee Holding Co | EPSILON HEALTHCARE vs. Nordic Semiconductor ASA | EPSILON HEALTHCARE vs. AUSTEVOLL SEAFOOD |
| Check Point vs. Apple Inc | Check Point vs. Apple Inc | Check Point vs. Microsoft | Check Point vs. Microsoft |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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