Correlation Between Epsilon Healthcare and Accent Resources
Can any of the company-specific risk be diversified away by investing in both Epsilon Healthcare and Accent Resources 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 Accent Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Epsilon Healthcare and Accent Resources NL, you can compare the effects of market volatilities on Epsilon Healthcare and Accent Resources 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 Accent Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epsilon Healthcare and Accent Resources.
Diversification Opportunities for Epsilon Healthcare and Accent Resources
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Epsilon and Accent is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Epsilon Healthcare and Accent Resources NL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Accent Resources 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 Accent Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Accent Resources has no effect on the direction of Epsilon Healthcare i.e., Epsilon Healthcare and Accent Resources go up and down completely randomly.
Pair Corralation between Epsilon Healthcare and Accent Resources
If you would invest 0.60 in Accent Resources NL on September 1, 2024 and sell it today you would earn a total of 0.00 from holding Accent Resources NL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epsilon Healthcare vs. Accent Resources NL
Performance |
| Timeline |
| Epsilon Healthcare |
| Accent Resources |
Epsilon Healthcare and Accent Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epsilon Healthcare and Accent Resources
The main advantage of trading using opposite Epsilon Healthcare and Accent Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epsilon Healthcare position performs unexpectedly, Accent Resources 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 Accent Resources will offset losses from the drop in Accent Resources' long position.| Epsilon Healthcare vs. Aneka Tambang Tbk | Epsilon Healthcare vs. Woolworths | Epsilon Healthcare vs. Commonwealth Bank | Epsilon Healthcare vs. BHP Group Limited |
| Accent Resources vs. Richmond Vanadium Technology | Accent Resources vs. Bio Gene Technology | Accent Resources vs. IDP Education | Accent Resources vs. Ainsworth Game Technology |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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