Correlation Between EPSILON HEALTHCARE and GWILLI FOOD
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and GWILLI FOOD 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 GWILLI FOOD 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 GWILLI FOOD, you can compare the effects of market volatilities on EPSILON HEALTHCARE and GWILLI FOOD 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 GWILLI FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and GWILLI FOOD.
Diversification Opportunities for EPSILON HEALTHCARE and GWILLI FOOD
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and GWILLI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and GWILLI FOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GWILLI FOOD 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 GWILLI FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GWILLI FOOD has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and GWILLI FOOD go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and GWILLI FOOD
If you would invest 0.75 in EPSILON HEALTHCARE LTD on October 29, 2024 and sell it today you would earn a total of 0.00 from holding EPSILON HEALTHCARE LTD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. GWILLI FOOD
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| GWILLI FOOD |
EPSILON HEALTHCARE and GWILLI FOOD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and GWILLI FOOD
The main advantage of trading using opposite EPSILON HEALTHCARE and GWILLI FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, GWILLI FOOD 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 GWILLI FOOD will offset losses from the drop in GWILLI FOOD's long position.| EPSILON HEALTHCARE vs. GAMESTOP | EPSILON HEALTHCARE vs. Martin Marietta Materials | EPSILON HEALTHCARE vs. Boyd Gaming | EPSILON HEALTHCARE vs. Plastic Omnium |
| GWILLI FOOD vs. Goodyear Tire Rubber | GWILLI FOOD vs. Martin Marietta Materials | GWILLI FOOD vs. INTER CARS SA | GWILLI FOOD vs. Commercial Vehicle Group |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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