Correlation Between EGain and Asana
Can any of the company-specific risk be diversified away by investing in both EGain and Asana 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 Asana into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eGain and Asana Inc, you can compare the effects of market volatilities on EGain and Asana 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 Asana. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGain and Asana.
Diversification Opportunities for EGain and Asana
Very weak diversification
The 3 months correlation between EGain and Asana is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding eGain and Asana Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Asana 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 Asana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Asana Inc has no effect on the direction of EGain i.e., EGain and Asana go up and down completely randomly.
Pair Corralation between EGain and Asana
Given the investment horizon of 90 days eGain is expected to under-perform the Asana. In addition to that, EGain is 1.0 times more volatile than Asana Inc. It trades about -0.03 of its total potential returns per unit of risk. Asana Inc is currently generating about -0.02 per unit of volatility. If you would invest 2,101 in Asana Inc on August 26, 2024 and sell it today you would lose (527.00) from holding Asana Inc or give up 25.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
eGain vs. Asana Inc
Performance |
| Timeline |
| eGain |
| Asana Inc |
EGain and Asana Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGain and Asana
The main advantage of trading using opposite EGain and Asana positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGain position performs unexpectedly, Asana 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 Asana will offset losses from the drop in Asana's long position.The idea behind eGain and Asana 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.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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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