Correlation Between EPSILON HEALTHCARE and CME
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and CME 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 CME 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 CME Group, you can compare the effects of market volatilities on EPSILON HEALTHCARE and CME 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 CME. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and CME.
Diversification Opportunities for EPSILON HEALTHCARE and CME
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and CME is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and CME Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CME Group 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 CME. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CME Group has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and CME go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and CME
If you would invest 22,310 in CME Group on October 26, 2024 and sell it today you would earn a total of 85.00 from holding CME Group or generate 0.38% 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. CME Group
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| CME Group |
EPSILON HEALTHCARE and CME Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and CME
The main advantage of trading using opposite EPSILON HEALTHCARE and CME positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, CME 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 CME will offset losses from the drop in CME's long position.| EPSILON HEALTHCARE vs. CAIRN HOMES EO | EPSILON HEALTHCARE vs. Sekisui Chemical Co | EPSILON HEALTHCARE vs. Taylor Morrison Home | EPSILON HEALTHCARE vs. The Home Depot |
| CME vs. United Airlines Holdings | CME vs. OPKO HEALTH | CME vs. EPSILON HEALTHCARE LTD | CME vs. National Health Investors |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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