Correlation Between EGain and Where Food
Can any of the company-specific risk be diversified away by investing in both EGain and Where Food 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 Where Food into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eGain and Where Food Comes, you can compare the effects of market volatilities on EGain and Where Food 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 Where Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of EGain and Where Food.
Diversification Opportunities for EGain and Where Food
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between EGain and Where is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding eGain and Where Food Comes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Where Food Comes 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 Where Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Where Food Comes has no effect on the direction of EGain i.e., EGain and Where Food go up and down completely randomly.
Pair Corralation between EGain and Where Food
Given the investment horizon of 90 days eGain is expected to generate 0.91 times more return on investment than Where Food. However, eGain is 1.1 times less risky than Where Food. It trades about 0.0 of its potential returns per unit of risk. Where Food Comes is currently generating about -0.07 per unit of risk. If you would invest 614.00 in eGain on November 3, 2024 and sell it today you would lose (4.00) from holding eGain or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
eGain vs. Where Food Comes
Performance |
| Timeline |
| eGain |
| Where Food Comes |
EGain and Where Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EGain and Where Food
The main advantage of trading using opposite EGain and Where Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EGain position performs unexpectedly, Where Food 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 Where Food will offset losses from the drop in Where Food's long position.| EGain vs. Issuer Direct Corp | EGain vs. Research Solutions | EGain vs. Alkami Technology | EGain vs. Agilysys |
| Where Food vs. Issuer Direct Corp | Where Food vs. Smith Midland Corp | Where Food vs. Bm Technologies | Where Food vs. 1StdibsCom |
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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