Correlation Between EPSILON HEALTHCARE and SBM OFFSHORE
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and SBM OFFSHORE 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 SBM OFFSHORE 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 SBM OFFSHORE, you can compare the effects of market volatilities on EPSILON HEALTHCARE and SBM OFFSHORE 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 SBM OFFSHORE. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and SBM OFFSHORE.
Diversification Opportunities for EPSILON HEALTHCARE and SBM OFFSHORE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and SBM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and SBM OFFSHORE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SBM OFFSHORE 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 SBM OFFSHORE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SBM OFFSHORE has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and SBM OFFSHORE go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and SBM OFFSHORE
If you would invest 0.75 in EPSILON HEALTHCARE LTD on September 12, 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 | 95.45% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. SBM OFFSHORE
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| SBM OFFSHORE |
EPSILON HEALTHCARE and SBM OFFSHORE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and SBM OFFSHORE
The main advantage of trading using opposite EPSILON HEALTHCARE and SBM OFFSHORE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, SBM OFFSHORE 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 SBM OFFSHORE will offset losses from the drop in SBM OFFSHORE'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 |
| SBM OFFSHORE vs. Apple Inc | SBM OFFSHORE vs. Apple Inc | SBM OFFSHORE vs. Apple Inc | SBM OFFSHORE vs. Apple Inc |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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