Correlation Between Amani Gold and Epsilon Healthcare
Can any of the company-specific risk be diversified away by investing in both Amani Gold 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 Amani Gold and Epsilon Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amani Gold and Epsilon Healthcare, you can compare the effects of market volatilities on Amani Gold 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 Amani Gold with a short position of Epsilon Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amani Gold and Epsilon Healthcare.
Diversification Opportunities for Amani Gold and Epsilon Healthcare
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Amani and Epsilon is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Amani Gold and Epsilon Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epsilon Healthcare and Amani Gold 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 Amani Gold 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 Amani Gold i.e., Amani Gold and Epsilon Healthcare go up and down completely randomly.
Pair Corralation between Amani Gold and Epsilon Healthcare
If you would invest 2.40 in Epsilon Healthcare on August 25, 2024 and sell it today you would earn a total of 0.00 from holding Epsilon Healthcare or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amani Gold vs. Epsilon Healthcare
Performance |
| Timeline |
| Amani Gold |
| Epsilon Healthcare |
Amani Gold and Epsilon Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amani Gold and Epsilon Healthcare
The main advantage of trading using opposite Amani Gold and Epsilon Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amani Gold 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.| Amani Gold vs. Aussie Broadband | Amani Gold vs. Dexus Convenience Retail | Amani Gold vs. Srj Technologies Group | Amani Gold vs. Richmond Vanadium Technology |
| Epsilon Healthcare vs. Energy Resources | Epsilon Healthcare vs. 88 Energy | Epsilon Healthcare vs. Amani Gold | Epsilon Healthcare vs. A1 Investments Resources |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |