Correlation Between EPSILON HEALTHCARE and Performance Food
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and Performance Food 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 Performance Food 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 Performance Food Group, you can compare the effects of market volatilities on EPSILON HEALTHCARE and Performance Food 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 Performance Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and Performance Food.
Diversification Opportunities for EPSILON HEALTHCARE and Performance Food
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and Performance is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and Performance Food Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Performance Food 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 Performance Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Performance Food has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and Performance Food go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and Performance Food
If you would invest 7,300 in Performance Food Group on September 1, 2024 and sell it today you would earn a total of 950.00 from holding Performance Food Group or generate 13.01% 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. Performance Food Group
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| Performance Food |
EPSILON HEALTHCARE and Performance Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and Performance Food
The main advantage of trading using opposite EPSILON HEALTHCARE and Performance Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, Performance Food 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 Performance Food will offset losses from the drop in Performance Food's long position.| EPSILON HEALTHCARE vs. Takeda Pharmaceutical | EPSILON HEALTHCARE vs. Superior Plus Corp | EPSILON HEALTHCARE vs. Origin Agritech | EPSILON HEALTHCARE vs. Identiv |
| Performance Food vs. Sysco | Performance Food vs. Jernimo Martins SGPS | Performance Food vs. US Foods Holding | Performance Food vs. Metro 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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