Correlation Between Cuentas and EGain
Can any of the company-specific risk be diversified away by investing in both Cuentas 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 Cuentas and EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cuentas and eGain, you can compare the effects of market volatilities on Cuentas 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 Cuentas with a short position of EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cuentas and EGain.
Diversification Opportunities for Cuentas and EGain
Pay attention - limited upside
The 3 months correlation between Cuentas and EGain is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cuentas and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and Cuentas 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 Cuentas 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 Cuentas i.e., Cuentas and EGain go up and down completely randomly.
Pair Corralation between Cuentas and EGain
If you would invest 513.00 in Cuentas on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Cuentas or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Cuentas vs. eGain
Performance |
| Timeline |
| Cuentas |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| eGain |
Cuentas and EGain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cuentas and EGain
The main advantage of trading using opposite Cuentas and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cuentas 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.The idea behind Cuentas and eGain pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| EGain vs. Issuer Direct Corp | EGain vs. Research Solutions | EGain vs. Alkami Technology | EGain vs. Agilysys |
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.
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