Correlation Between EPSILON HEALTHCARE and United Internet
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and United Internet 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 United Internet 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 United Internet AG, you can compare the effects of market volatilities on EPSILON HEALTHCARE and United Internet 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 United Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and United Internet.
Diversification Opportunities for EPSILON HEALTHCARE and United Internet
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and United is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and United Internet AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on United Internet AG 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 United Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of United Internet AG has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and United Internet go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and United Internet
If you would invest 1,557 in United Internet AG on November 7, 2024 and sell it today you would earn a total of 70.00 from holding United Internet AG or generate 4.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. United Internet AG
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| United Internet AG |
EPSILON HEALTHCARE and United Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and United Internet
The main advantage of trading using opposite EPSILON HEALTHCARE and United Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, United Internet 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 United Internet will offset losses from the drop in United Internet's long position.| EPSILON HEALTHCARE vs. Laureate Education | EPSILON HEALTHCARE vs. betterU Education Corp | EPSILON HEALTHCARE vs. EEDUCATION ALBERT AB | EPSILON HEALTHCARE vs. Mount Gibson Iron |
| United Internet vs. Warner Music Group | United Internet vs. Tencent Music Entertainment | United Internet vs. Yuexiu Transport Infrastructure | United Internet vs. Tsingtao Brewery |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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