Correlation Between EGain and Ackroo
Can any of the company-specific risk be diversified away by investing in both EGain and Ackroo 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 EGain and Ackroo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eGain and Ackroo Inc, you can compare the effects of market volatilities on EGain and Ackroo 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 EGain with a short position of Ackroo. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGain and Ackroo.
Diversification Opportunities for EGain and Ackroo
Modest diversification
The 3 months correlation between EGain and Ackroo is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding eGain and Ackroo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ackroo Inc and EGain 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 eGain are associated (or correlated) with Ackroo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ackroo Inc has no effect on the direction of EGain i.e., EGain and Ackroo go up and down completely randomly.
Pair Corralation between EGain and Ackroo
Given the investment horizon of 90 days eGain is expected to generate 1.74 times more return on investment than Ackroo. However, EGain is 1.74 times more volatile than Ackroo Inc. It trades about 0.13 of its potential returns per unit of risk. Ackroo Inc is currently generating about -0.02 per unit of risk. If you would invest 482.00 in eGain on August 25, 2024 and sell it today you would earn a total of 51.00 from holding eGain or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
eGain vs. Ackroo Inc
Performance |
| Timeline |
| eGain |
| Ackroo Inc |
EGain and Ackroo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGain and Ackroo
The main advantage of trading using opposite EGain and Ackroo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGain position performs unexpectedly, Ackroo 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 Ackroo will offset losses from the drop in Ackroo's long position.The idea behind eGain and Ackroo Inc 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.| Ackroo vs. CurrentC Power | Ackroo vs. BASE Inc | Ackroo vs. Maxwell Resource | Ackroo vs. Agent Information Software |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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