Correlation Between EPSILON HEALTHCARE and PT United
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and PT United 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 PT United 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 PT United Tractors, you can compare the effects of market volatilities on EPSILON HEALTHCARE and PT United 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 PT United. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and PT United.
Diversification Opportunities for EPSILON HEALTHCARE and PT United
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and UTY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and PT United Tractors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PT United Tractors 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 PT United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PT United Tractors has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and PT United go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and PT United
Assuming the 90 days trading horizon EPSILON HEALTHCARE LTD is expected to under-perform the PT United. But the stock apears to be less risky and, when comparing its historical volatility, EPSILON HEALTHCARE LTD is 3.14 times less risky than PT United. The stock trades about -0.03 of its potential returns per unit of risk. The PT United Tractors is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 134.00 in PT United Tractors on September 4, 2024 and sell it today you would earn a total of 19.00 from holding PT United Tractors or generate 14.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. PT United Tractors
Performance |
| Timeline |
| EPSILON HEALTHCARE LTD |
| PT United Tractors |
EPSILON HEALTHCARE and PT United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPSILON HEALTHCARE and PT United
The main advantage of trading using opposite EPSILON HEALTHCARE and PT United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, PT United 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 PT United will offset losses from the drop in PT United's long position.| EPSILON HEALTHCARE vs. Takeda Pharmaceutical | EPSILON HEALTHCARE vs. Elanco Animal Health | EPSILON HEALTHCARE vs. Superior Plus Corp | EPSILON HEALTHCARE vs. Origin Agritech |
| PT United vs. CarsalesCom | PT United vs. EPSILON HEALTHCARE LTD | PT United vs. Treasury Wine Estates | PT United vs. COMMERCIAL VEHICLE |
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.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device |