Correlation Between EPSILON HEALTHCARE and DAX Index

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Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and DAX Index 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 DAX Index 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 DAX Index, you can compare the effects of market volatilities on EPSILON HEALTHCARE and DAX Index 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 DAX Index. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and DAX Index.

Diversification Opportunities for EPSILON HEALTHCARE and DAX Index

EPSILONDAXDiversified AwayEPSILONDAXDiversified Away100%
0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between EPSILON and DAX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and DAX Index in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DAX Index 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 DAX Index. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DAX Index has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and DAX Index go up and down completely randomly.
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Pair Corralation between EPSILON HEALTHCARE and DAX Index

If you would invest  2,203,783  in DAX Index on December 13, 2024 and sell it today you would earn a total of  52,931  from holding DAX Index or generate 2.4% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.65%
ValuesDaily Returns

EPSILON HEALTHCARE LTD  vs.  DAX Index

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 051015
JavaScript chart by amCharts 3.21.159TH0 GDAXI
       Timeline  

EPSILON HEALTHCARE and DAX Index Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15 0.050.100.150.200.250.30
JavaScript chart by amCharts 3.21.159TH0 GDAXI
       Returns  

Pair Trading with EPSILON HEALTHCARE and DAX Index

The main advantage of trading using opposite EPSILON HEALTHCARE and DAX Index positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, DAX Index 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 DAX Index will offset losses from the drop in DAX Index's long position.
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The idea behind EPSILON HEALTHCARE LTD and DAX Index pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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