Correlation Between EGain and Obocon
Can any of the company-specific risk be diversified away by investing in both EGain and Obocon 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 Obocon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eGain and Obocon Inc, you can compare the effects of market volatilities on EGain and Obocon 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 Obocon. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGain and Obocon.
Diversification Opportunities for EGain and Obocon
Pay attention - limited upside
The 3 months correlation between EGain and Obocon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding eGain and Obocon Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Obocon 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 Obocon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Obocon Inc has no effect on the direction of EGain i.e., EGain and Obocon go up and down completely randomly.
Pair Corralation between EGain and Obocon
If you would invest 521.00 in eGain on September 12, 2024 and sell it today you would earn a total of 52.00 from holding eGain or generate 9.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
eGain vs. Obocon Inc
Performance |
| Timeline |
| eGain |
| Obocon Inc |
EGain and Obocon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGain and Obocon
The main advantage of trading using opposite EGain and Obocon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGain position performs unexpectedly, Obocon 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 Obocon will offset losses from the drop in Obocon's long position.| EGain vs. Issuer Direct Corp | EGain vs. Research Solutions | EGain vs. Alkami Technology | EGain vs. Agilysys |
| Obocon vs. UBI Blockchain Internet | Obocon vs. TrackX Holdings | Obocon vs. Maptelligent | Obocon vs. nCino Inc |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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