Correlation Between EPSILON HEALTHCARE and Nine Dragons
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and Nine Dragons 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 Nine Dragons 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 Nine Dragons Paper, you can compare the effects of market volatilities on EPSILON HEALTHCARE and Nine Dragons 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 Nine Dragons. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and Nine Dragons.
Diversification Opportunities for EPSILON HEALTHCARE and Nine Dragons
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and Nine is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and Nine Dragons Paper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nine Dragons Paper 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 Nine Dragons. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nine Dragons Paper has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and Nine Dragons go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and Nine Dragons
If you would invest 0.75 in EPSILON HEALTHCARE LTD on September 4, 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 | 90.91% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. Nine Dragons Paper
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| Nine Dragons Paper |
EPSILON HEALTHCARE and Nine Dragons Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and Nine Dragons
The main advantage of trading using opposite EPSILON HEALTHCARE and Nine Dragons positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, Nine Dragons 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 Nine Dragons will offset losses from the drop in Nine Dragons' long position.| EPSILON HEALTHCARE vs. Takeda Pharmaceutical | EPSILON HEALTHCARE vs. Elanco Animal Health | EPSILON HEALTHCARE vs. Superior Plus Corp | EPSILON HEALTHCARE vs. Origin Agritech |
| Nine Dragons vs. AUSTEVOLL SEAFOOD | Nine Dragons vs. Insteel Industries | Nine Dragons vs. MITSUBISHI STEEL MFG | Nine Dragons vs. JJ SNACK FOODS |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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