Correlation Between EGain and Friendable
Can any of the company-specific risk be diversified away by investing in both EGain and Friendable 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 Friendable into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eGain and Friendable, you can compare the effects of market volatilities on EGain and Friendable 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 Friendable. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGain and Friendable.
Diversification Opportunities for EGain and Friendable
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EGain and Friendable is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding eGain and Friendable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Friendable 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 Friendable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Friendable has no effect on the direction of EGain i.e., EGain and Friendable go up and down completely randomly.
Pair Corralation between EGain and Friendable
Given the investment horizon of 90 days eGain is expected to under-perform the Friendable. But the stock apears to be less risky and, when comparing its historical volatility, eGain is 1.94 times less risky than Friendable. The stock trades about -0.01 of its potential returns per unit of risk. The Friendable is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 0.01 in Friendable on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Friendable or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.6% |
| Values | Daily Returns |
eGain vs. Friendable
Performance |
| Timeline |
| eGain |
| Friendable |
EGain and Friendable Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGain and Friendable
The main advantage of trading using opposite EGain and Friendable positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGain position performs unexpectedly, Friendable 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 Friendable will offset losses from the drop in Friendable's long position.| EGain vs. Issuer Direct Corp | EGain vs. Research Solutions | EGain vs. Alkami Technology | EGain vs. Agilysys |
| Friendable vs. RenoWorks Software | Friendable vs. LifeSpeak | Friendable vs. 01 Communique Laboratory | Friendable vs. On4 Communications |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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