Correlation Between EPAM Systems and PACIFIC
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By analyzing existing cross correlation between EPAM Systems and PACIFIC GAS AND, you can compare the effects of market volatilities on EPAM Systems and PACIFIC 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 EPAM Systems with a short position of PACIFIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPAM Systems and PACIFIC.
Diversification Opportunities for EPAM Systems and PACIFIC
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EPAM and PACIFIC is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding EPAM Systems and PACIFIC GAS AND in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PACIFIC GAS AND and EPAM 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 EPAM Systems are associated (or correlated) with PACIFIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PACIFIC GAS AND has no effect on the direction of EPAM Systems i.e., EPAM Systems and PACIFIC go up and down completely randomly.
Pair Corralation between EPAM Systems and PACIFIC
Given the investment horizon of 90 days EPAM Systems is expected to generate 3.49 times more return on investment than PACIFIC. However, EPAM Systems is 3.49 times more volatile than PACIFIC GAS AND. It trades about 0.12 of its potential returns per unit of risk. PACIFIC GAS AND is currently generating about 0.08 per unit of risk. If you would invest 17,451 in EPAM Systems on September 3, 2024 and sell it today you would earn a total of 6,941 from holding EPAM Systems or generate 39.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 89.6% |
| Values | Daily Returns |
EPAM Systems vs. PACIFIC GAS AND
Performance |
| Timeline |
| EPAM Systems |
| PACIFIC GAS AND |
EPAM Systems and PACIFIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPAM Systems and PACIFIC
The main advantage of trading using opposite EPAM Systems and PACIFIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPAM Systems position performs unexpectedly, PACIFIC 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 PACIFIC will offset losses from the drop in PACIFIC's long position.| EPAM Systems vs. Accenture plc | EPAM Systems vs. International Business Machines | EPAM Systems vs. ASGN Inc | EPAM Systems vs. ExlService Holdings |
| PACIFIC vs. Boyd Gaming | PACIFIC vs. Playstudios | PACIFIC vs. Kite Realty Group | PACIFIC vs. Revolve Group LLC |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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