Correlation Between Epsilon Healthcare and Australian Strategic
Can any of the company-specific risk be diversified away by investing in both Epsilon Healthcare and Australian Strategic 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 Australian Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Epsilon Healthcare and Australian Strategic Materials, you can compare the effects of market volatilities on Epsilon Healthcare and Australian Strategic 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 Australian Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epsilon Healthcare and Australian Strategic.
Diversification Opportunities for Epsilon Healthcare and Australian Strategic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Epsilon and Australian is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Epsilon Healthcare and Australian Strategic Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Australian Strategic 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 Australian Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Australian Strategic has no effect on the direction of Epsilon Healthcare i.e., Epsilon Healthcare and Australian Strategic go up and down completely randomly.
Pair Corralation between Epsilon Healthcare and Australian Strategic
Assuming the 90 days trading horizon Epsilon Healthcare is expected to generate 0.89 times more return on investment than Australian Strategic. However, Epsilon Healthcare is 1.12 times less risky than Australian Strategic. It trades about 0.02 of its potential returns per unit of risk. Australian Strategic Materials is currently generating about -0.04 per unit of risk. If you would invest 2.60 in Epsilon Healthcare on November 1, 2024 and sell it today you would lose (0.20) from holding Epsilon Healthcare or give up 7.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epsilon Healthcare vs. Australian Strategic Materials
Performance |
| Timeline |
| Epsilon Healthcare |
| Australian Strategic |
Epsilon Healthcare and Australian Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epsilon Healthcare and Australian Strategic
The main advantage of trading using opposite Epsilon Healthcare and Australian Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epsilon Healthcare position performs unexpectedly, Australian Strategic 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 Australian Strategic will offset losses from the drop in Australian Strategic's long position.| Epsilon Healthcare vs. Computershare | Epsilon Healthcare vs. Lendlease Group | Epsilon Healthcare vs. Oneview Healthcare PLC | Epsilon Healthcare vs. Carlton Investments |
| Australian Strategic vs. Regis Healthcare | Australian Strategic vs. AiMedia Technologies | Australian Strategic vs. Spirit Telecom | Australian Strategic vs. Autosports Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |