Correlation Between CoreCard Corp and EPlus
Can any of the company-specific risk be diversified away by investing in both CoreCard Corp and EPlus 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 EPlus into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CoreCard Corp and ePlus inc, you can compare the effects of market volatilities on CoreCard Corp and EPlus 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 EPlus. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoreCard Corp and EPlus.
Diversification Opportunities for CoreCard Corp and EPlus
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between CoreCard and EPlus is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding CoreCard Corp and ePlus inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ePlus inc 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 EPlus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ePlus inc has no effect on the direction of CoreCard Corp i.e., CoreCard Corp and EPlus go up and down completely randomly.
Pair Corralation between CoreCard Corp and EPlus
Given the investment horizon of 90 days CoreCard Corp is expected to generate 0.58 times more return on investment than EPlus. However, CoreCard Corp is 1.72 times less risky than EPlus. It trades about 0.65 of its potential returns per unit of risk. ePlus inc is currently generating about -0.15 per unit of risk. If you would invest 1,386 in CoreCard Corp on August 27, 2024 and sell it today you would earn a total of 585.00 from holding CoreCard Corp or generate 42.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CoreCard Corp vs. ePlus inc
Performance |
| Timeline |
| CoreCard Corp |
| ePlus inc |
CoreCard Corp and EPlus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CoreCard Corp and EPlus
The main advantage of trading using opposite CoreCard Corp and EPlus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CoreCard Corp position performs unexpectedly, EPlus 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 EPlus will offset losses from the drop in EPlus' 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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