Correlation Between EGain and DecisionPoint Systems
Can any of the company-specific risk be diversified away by investing in both EGain and DecisionPoint Systems 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 DecisionPoint Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eGain and DecisionPoint Systems, you can compare the effects of market volatilities on EGain and DecisionPoint Systems 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 DecisionPoint Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGain and DecisionPoint Systems.
Diversification Opportunities for EGain and DecisionPoint Systems
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EGain and DecisionPoint is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding eGain and DecisionPoint Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DecisionPoint Systems 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 DecisionPoint Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DecisionPoint Systems has no effect on the direction of EGain i.e., EGain and DecisionPoint Systems go up and down completely randomly.
Pair Corralation between EGain and DecisionPoint Systems
If you would invest 518.00 in eGain on September 3, 2024 and sell it today you would earn a total of 15.00 from holding eGain or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 5.0% |
| Values | Daily Returns |
eGain vs. DecisionPoint Systems
Performance |
| Timeline |
| eGain |
| DecisionPoint Systems |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EGain and DecisionPoint Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGain and DecisionPoint Systems
The main advantage of trading using opposite EGain and DecisionPoint Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGain position performs unexpectedly, DecisionPoint Systems 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 DecisionPoint Systems will offset losses from the drop in DecisionPoint Systems' long position.| EGain vs. Issuer Direct Corp | EGain vs. Research Solutions | EGain vs. Alkami Technology | EGain vs. Agilysys |
| DecisionPoint Systems vs. HeartCore Enterprises | DecisionPoint Systems vs. Ostin Technology Group | DecisionPoint Systems vs. Direct Digital Holdings |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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