Correlation Between EPSILON HEALTHCARE and WESANA HEALTH
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and WESANA HEALTH 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 WESANA HEALTH 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 WESANA HEALTH HOLD, you can compare the effects of market volatilities on EPSILON HEALTHCARE and WESANA HEALTH 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 WESANA HEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and WESANA HEALTH.
Diversification Opportunities for EPSILON HEALTHCARE and WESANA HEALTH
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between EPSILON and WESANA is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and WESANA HEALTH HOLD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WESANA HEALTH HOLD 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 WESANA HEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WESANA HEALTH HOLD has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and WESANA HEALTH go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and WESANA HEALTH
If you would invest 0.15 in WESANA HEALTH HOLD on November 7, 2024 and sell it today you would earn a total of 0.00 from holding WESANA HEALTH HOLD or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. WESANA HEALTH HOLD
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| WESANA HEALTH HOLD |
EPSILON HEALTHCARE and WESANA HEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and WESANA HEALTH
The main advantage of trading using opposite EPSILON HEALTHCARE and WESANA HEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, WESANA HEALTH 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 WESANA HEALTH will offset losses from the drop in WESANA HEALTH's long position.| EPSILON HEALTHCARE vs. G III Apparel Group | EPSILON HEALTHCARE vs. PT Steel Pipe | EPSILON HEALTHCARE vs. G III APPAREL GROUP | EPSILON HEALTHCARE vs. Mount Gibson Iron |
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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