Correlation Between Advanced Braking and Epsilon Healthcare
Can any of the company-specific risk be diversified away by investing in both Advanced Braking and Epsilon Healthcare 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 Advanced Braking and Epsilon Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Advanced Braking Technology and Epsilon Healthcare, you can compare the effects of market volatilities on Advanced Braking and Epsilon Healthcare 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 Advanced Braking with a short position of Epsilon Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Braking and Epsilon Healthcare.
Diversification Opportunities for Advanced Braking and Epsilon Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Advanced and Epsilon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Braking Technology and Epsilon Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epsilon Healthcare and Advanced Braking 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 Advanced Braking Technology are associated (or correlated) with Epsilon Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epsilon Healthcare has no effect on the direction of Advanced Braking i.e., Advanced Braking and Epsilon Healthcare go up and down completely randomly.
Pair Corralation between Advanced Braking and Epsilon Healthcare
If you would invest 8.10 in Advanced Braking Technology on October 28, 2024 and sell it today you would earn a total of 0.90 from holding Advanced Braking Technology or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Advanced Braking Technology vs. Epsilon Healthcare
Performance |
| Timeline |
| Advanced Braking Tec |
| Epsilon Healthcare |
Advanced Braking and Epsilon Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Advanced Braking and Epsilon Healthcare
The main advantage of trading using opposite Advanced Braking and Epsilon Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Braking position performs unexpectedly, Epsilon Healthcare 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 Epsilon Healthcare will offset losses from the drop in Epsilon Healthcare's long position.| Advanced Braking vs. Embark Education Group | Advanced Braking vs. AiMedia Technologies | Advanced Braking vs. Medical Developments International | Advanced Braking vs. Actinogen Medical |
| Epsilon Healthcare vs. Hudson Investment Group | Epsilon Healthcare vs. Viva Leisure | Epsilon Healthcare vs. Aristocrat Leisure | Epsilon Healthcare vs. Clime Investment Management |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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