Correlation Between EGain and Park City
Can any of the company-specific risk be diversified away by investing in both EGain and Park City 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 Park City into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eGain and Park City Group, you can compare the effects of market volatilities on EGain and Park City 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 Park City. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGain and Park City.
Diversification Opportunities for EGain and Park City
Good diversification
The 3 months correlation between EGain and Park is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding eGain and Park City Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Park City Group 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 Park City. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Park City Group has no effect on the direction of EGain i.e., EGain and Park City go up and down completely randomly.
Pair Corralation between EGain and Park City
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. Park City Group
Performance |
| Timeline |
| eGain |
| Park City Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
EGain and Park City Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGain and Park City
The main advantage of trading using opposite EGain and Park City positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGain position performs unexpectedly, Park City 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 Park City will offset losses from the drop in Park City's long position.| EGain vs. Issuer Direct Corp | EGain vs. Research Solutions | EGain vs. Alkami Technology | EGain vs. Agilysys |
| Park City vs. Red Violet | Park City vs. Issuer Direct Corp | Park City vs. Research Solutions | Park City vs. Rayont 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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