Correlation Between EPSILON HEALTHCARE and RATIONAL Aktiengesellscha

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and RATIONAL Aktiengesellscha 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 RATIONAL Aktiengesellscha 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 RATIONAL Aktiengesellschaft, you can compare the effects of market volatilities on EPSILON HEALTHCARE and RATIONAL Aktiengesellscha 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 RATIONAL Aktiengesellscha. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and RATIONAL Aktiengesellscha.

Diversification Opportunities for EPSILON HEALTHCARE and RATIONAL Aktiengesellscha

0.0
  Correlation Coefficient

Pay attention - limited upside

The 3 months correlation between EPSILON and RATIONAL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and RATIONAL Aktiengesellschaft in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RATIONAL Aktiengesellscha 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 RATIONAL Aktiengesellscha. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RATIONAL Aktiengesellscha has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and RATIONAL Aktiengesellscha go up and down completely randomly.

Pair Corralation between EPSILON HEALTHCARE and RATIONAL Aktiengesellscha

If you would invest  0.75  in EPSILON HEALTHCARE LTD on September 26, 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 Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy95.45%
ValuesDaily Returns

EPSILON HEALTHCARE LTD  vs.  RATIONAL Aktiengesellschaft

 Performance 
       Timeline  
EPSILON HEALTHCARE LTD 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days EPSILON HEALTHCARE LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, EPSILON HEALTHCARE is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.
RATIONAL Aktiengesellscha 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days RATIONAL Aktiengesellschaft has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

EPSILON HEALTHCARE and RATIONAL Aktiengesellscha Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with EPSILON HEALTHCARE and RATIONAL Aktiengesellscha

The main advantage of trading using opposite EPSILON HEALTHCARE and RATIONAL Aktiengesellscha positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, RATIONAL Aktiengesellscha 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 RATIONAL Aktiengesellscha will offset losses from the drop in RATIONAL Aktiengesellscha's long position.
The idea behind EPSILON HEALTHCARE LTD and RATIONAL Aktiengesellschaft pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

Other Complementary Tools

Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Portfolio Optimization
Compute new portfolio that will generate highest expected return given your specified tolerance for risk
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes