Correlation Between Coffee Holding and EPSILON HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Coffee Holding 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 Coffee Holding and EPSILON HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Coffee Holding Co and EPSILON HEALTHCARE LTD, you can compare the effects of market volatilities on Coffee Holding 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 Coffee Holding with a short position of EPSILON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Coffee Holding and EPSILON HEALTHCARE.
Diversification Opportunities for Coffee Holding and EPSILON HEALTHCARE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Coffee and EPSILON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Coffee Holding Co and EPSILON HEALTHCARE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPSILON HEALTHCARE LTD and Coffee Holding 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 Coffee Holding Co 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 LTD has no effect on the direction of Coffee Holding i.e., Coffee Holding and EPSILON HEALTHCARE go up and down completely randomly.
Pair Corralation between Coffee Holding and EPSILON HEALTHCARE
If you would invest 326.00 in Coffee Holding Co on September 27, 2024 and sell it today you would earn a total of 22.00 from holding Coffee Holding Co or generate 6.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Coffee Holding Co vs. EPSILON HEALTHCARE LTD
Performance |
| Timeline |
| Coffee Holding |
| EPSILON HEALTHCARE LTD |
Coffee Holding and EPSILON HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Coffee Holding and EPSILON HEALTHCARE
The main advantage of trading using opposite Coffee Holding and EPSILON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Coffee Holding 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.| Coffee Holding vs. Mowi ASA | Coffee Holding vs. LEROY SEAFOOD GRUNSPADR | Coffee Holding vs. Lery Seafood Group | Coffee Holding vs. Nisshin Seifun Group |
| EPSILON HEALTHCARE vs. Lery Seafood Group | EPSILON HEALTHCARE vs. Coffee Holding Co | EPSILON HEALTHCARE vs. Nordic Semiconductor ASA | EPSILON HEALTHCARE vs. AUSTEVOLL SEAFOOD |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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