Correlation Between Enghouse Systems and Goeasy
Can any of the company-specific risk be diversified away by investing in both Enghouse Systems and Goeasy 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 Enghouse Systems and Goeasy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Enghouse Systems and goeasy, you can compare the effects of market volatilities on Enghouse Systems and Goeasy 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 Enghouse Systems with a short position of Goeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Enghouse Systems and Goeasy.
Diversification Opportunities for Enghouse Systems and Goeasy
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Enghouse and Goeasy is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Enghouse Systems and goeasy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on goeasy and Enghouse Systems 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 Enghouse Systems are associated (or correlated) with Goeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of goeasy has no effect on the direction of Enghouse Systems i.e., Enghouse Systems and Goeasy go up and down completely randomly.
Pair Corralation between Enghouse Systems and Goeasy
Assuming the 90 days trading horizon Enghouse Systems is expected to under-perform the Goeasy. In addition to that, Enghouse Systems is 2.07 times more volatile than goeasy. It trades about -0.06 of its total potential returns per unit of risk. goeasy is currently generating about 0.06 per unit of volatility. If you would invest 16,945 in goeasy on October 22, 2024 and sell it today you would earn a total of 454.00 from holding goeasy or generate 2.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Enghouse Systems vs. goeasy
Performance |
| Timeline |
| Enghouse Systems |
| goeasy |
Enghouse Systems and Goeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Enghouse Systems and Goeasy
The main advantage of trading using opposite Enghouse Systems and Goeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Enghouse Systems position performs unexpectedly, Goeasy 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 Goeasy will offset losses from the drop in Goeasy's long position.| Enghouse Systems vs. Kinaxis | Enghouse Systems vs. Open Text Corp | Enghouse Systems vs. Descartes Systems Group | Enghouse Systems vs. Constellation Software |
| Goeasy vs. Forsys Metals Corp | Goeasy vs. South Pacific Metals | Goeasy vs. Plaza Retail REIT | Goeasy vs. SalesforceCom CDR |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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