Correlation Between Ackroo and EGain
Can any of the company-specific risk be diversified away by investing in both Ackroo and EGain 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 Ackroo and EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ackroo Inc and eGain, you can compare the effects of market volatilities on Ackroo and EGain 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 Ackroo with a short position of EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ackroo and EGain.
Diversification Opportunities for Ackroo and EGain
Modest diversification
The 3 months correlation between Ackroo and EGain is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Ackroo Inc and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and Ackroo 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 Ackroo Inc are associated (or correlated) with EGain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eGain has no effect on the direction of Ackroo i.e., Ackroo and EGain go up and down completely randomly.
Pair Corralation between Ackroo and EGain
Assuming the 90 days horizon Ackroo Inc is expected to under-perform the EGain. But the pink sheet apears to be less risky and, when comparing its historical volatility, Ackroo Inc is 1.74 times less risky than EGain. The pink sheet trades about -0.02 of its potential returns per unit of risk. The eGain is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 482.00 in eGain on August 25, 2024 and sell it today you would earn a total of 51.00 from holding eGain or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ackroo Inc vs. eGain
Performance |
| Timeline |
| Ackroo Inc |
| eGain |
Ackroo and EGain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ackroo and EGain
The main advantage of trading using opposite Ackroo and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ackroo position performs unexpectedly, EGain 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 EGain will offset losses from the drop in EGain's long position.| Ackroo vs. CurrentC Power | Ackroo vs. BASE Inc | Ackroo vs. Maxwell Resource | Ackroo vs. Agent Information Software |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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