Correlation Between EPSILON HEALTHCARE and EHEALTH
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and EHEALTH 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 EHEALTH 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 EHEALTH, you can compare the effects of market volatilities on EPSILON HEALTHCARE and EHEALTH 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 EHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and EHEALTH.
Diversification Opportunities for EPSILON HEALTHCARE and EHEALTH
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and EHEALTH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and EHEALTH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EHEALTH 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 EHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EHEALTH has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and EHEALTH go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and EHEALTH
If you would invest 360.00 in EHEALTH on August 31, 2024 and sell it today you would earn a total of 195.00 from holding EHEALTH or generate 54.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. EHEALTH
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| EHEALTH |
EPSILON HEALTHCARE and EHEALTH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and EHEALTH
The main advantage of trading using opposite EPSILON HEALTHCARE and EHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, EHEALTH 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 EHEALTH will offset losses from the drop in EHEALTH's long position.| EPSILON HEALTHCARE vs. Takeda Pharmaceutical | EPSILON HEALTHCARE vs. Superior Plus Corp | EPSILON HEALTHCARE vs. Origin Agritech | EPSILON HEALTHCARE vs. Identiv |
| EHEALTH vs. SIVERS SEMICONDUCTORS AB | EHEALTH vs. Darden Restaurants | EHEALTH vs. Reliance Steel Aluminum | EHEALTH vs. Q2M Managementberatung AG |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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