Correlation Between Epsilon Healthcare and Auswide Bank
Can any of the company-specific risk be diversified away by investing in both Epsilon Healthcare and Auswide Bank 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 Epsilon Healthcare and Auswide Bank into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Epsilon Healthcare and Auswide Bank, you can compare the effects of market volatilities on Epsilon Healthcare and Auswide Bank 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 Epsilon Healthcare with a short position of Auswide Bank. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epsilon Healthcare and Auswide Bank.
Diversification Opportunities for Epsilon Healthcare and Auswide Bank
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Epsilon and Auswide is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Epsilon Healthcare and Auswide Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Auswide Bank and Epsilon Healthcare 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 Epsilon Healthcare are associated (or correlated) with Auswide Bank. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Auswide Bank has no effect on the direction of Epsilon Healthcare i.e., Epsilon Healthcare and Auswide Bank go up and down completely randomly.
Pair Corralation between Epsilon Healthcare and Auswide Bank
If you would invest 482.00 in Auswide Bank on October 30, 2024 and sell it today you would earn a total of 5.00 from holding Auswide Bank or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epsilon Healthcare vs. Auswide Bank
Performance |
| Timeline |
| Epsilon Healthcare |
| Auswide Bank |
Epsilon Healthcare and Auswide Bank Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epsilon Healthcare and Auswide Bank
The main advantage of trading using opposite Epsilon Healthcare and Auswide Bank positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epsilon Healthcare position performs unexpectedly, Auswide Bank 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 Auswide Bank will offset losses from the drop in Auswide Bank's long position.| Epsilon Healthcare vs. Alternative Investment Trust | Epsilon Healthcare vs. Microequities Asset Management | Epsilon Healthcare vs. Stelar Metals | Epsilon Healthcare vs. Truscott Mining Corp |
| Auswide Bank vs. Sonic Healthcare | Auswide Bank vs. Oneview Healthcare PLC | Auswide Bank vs. Event Hospitality and | Auswide Bank vs. Regal Funds Management |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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