Correlation Between CoreCard Corp and EGain
Can any of the company-specific risk be diversified away by investing in both CoreCard Corp 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 CoreCard Corp and EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CoreCard Corp and eGain, you can compare the effects of market volatilities on CoreCard Corp 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 CoreCard Corp with a short position of EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoreCard Corp and EGain.
Diversification Opportunities for CoreCard Corp and EGain
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between CoreCard and EGain is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding CoreCard Corp and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and CoreCard Corp 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 CoreCard Corp 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 CoreCard Corp i.e., CoreCard Corp and EGain go up and down completely randomly.
Pair Corralation between CoreCard Corp and EGain
Given the investment horizon of 90 days CoreCard Corp is expected to generate 1.1 times more return on investment than EGain. However, CoreCard Corp is 1.1 times more volatile than eGain. It trades about 0.0 of its potential returns per unit of risk. eGain is currently generating about -0.02 per unit of risk. If you would invest 2,786 in CoreCard Corp on August 29, 2024 and sell it today you would lose (638.00) from holding CoreCard Corp or give up 22.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CoreCard Corp vs. eGain
Performance |
| Timeline |
| CoreCard Corp |
| eGain |
CoreCard Corp and EGain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CoreCard Corp and EGain
The main advantage of trading using opposite CoreCard Corp and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CoreCard Corp 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.| CoreCard Corp vs. Meridianlink | CoreCard Corp vs. Clearwater Analytics Holdings | CoreCard Corp vs. Expensify | CoreCard Corp vs. Envestnet |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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