Correlation Between EGain and VERB TECHNOLOGY
Can any of the company-specific risk be diversified away by investing in both EGain and VERB TECHNOLOGY 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 VERB TECHNOLOGY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eGain and VERB TECHNOLOGY PANY, you can compare the effects of market volatilities on EGain and VERB TECHNOLOGY 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 VERB TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGain and VERB TECHNOLOGY.
Diversification Opportunities for EGain and VERB TECHNOLOGY
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EGain and VERB is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding eGain and VERB TECHNOLOGY PANY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VERB TECHNOLOGY PANY 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 VERB TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VERB TECHNOLOGY PANY has no effect on the direction of EGain i.e., EGain and VERB TECHNOLOGY go up and down completely randomly.
Pair Corralation between EGain and VERB TECHNOLOGY
Given the investment horizon of 90 days eGain is expected to generate 0.73 times more return on investment than VERB TECHNOLOGY. However, eGain is 1.37 times less risky than VERB TECHNOLOGY. It trades about 0.04 of its potential returns per unit of risk. VERB TECHNOLOGY PANY is currently generating about -0.24 per unit of risk. If you would invest 614.00 in eGain on November 2, 2024 and sell it today you would earn a total of 8.00 from holding eGain or generate 1.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
eGain vs. VERB TECHNOLOGY PANY
Performance |
| Timeline |
| eGain |
| VERB TECHNOLOGY PANY |
EGain and VERB TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGain and VERB TECHNOLOGY
The main advantage of trading using opposite EGain and VERB TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGain position performs unexpectedly, VERB TECHNOLOGY 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 VERB TECHNOLOGY will offset losses from the drop in VERB TECHNOLOGY's long position.| EGain vs. Issuer Direct Corp | EGain vs. Research Solutions | EGain vs. Alkami Technology | EGain vs. Agilysys |
| VERB TECHNOLOGY vs. Trust Stamp | VERB TECHNOLOGY vs. Freight Technologies | VERB TECHNOLOGY vs. Versus Systems | VERB TECHNOLOGY vs. Auddia 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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