Correlation Between Epsilon Healthcare and Gtn
Can any of the company-specific risk be diversified away by investing in both Epsilon Healthcare and Gtn 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 Gtn into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Epsilon Healthcare and Gtn, you can compare the effects of market volatilities on Epsilon Healthcare and Gtn 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 Gtn. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epsilon Healthcare and Gtn.
Diversification Opportunities for Epsilon Healthcare and Gtn
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Epsilon and Gtn is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Epsilon Healthcare and Gtn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gtn 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 Gtn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gtn has no effect on the direction of Epsilon Healthcare i.e., Epsilon Healthcare and Gtn go up and down completely randomly.
Pair Corralation between Epsilon Healthcare and Gtn
Assuming the 90 days trading horizon Epsilon Healthcare is expected to generate 1.33 times less return on investment than Gtn. In addition to that, Epsilon Healthcare is 1.37 times more volatile than Gtn. It trades about 0.02 of its total potential returns per unit of risk. Gtn is currently generating about 0.03 per unit of volatility. If you would invest 46.00 in Gtn on October 11, 2024 and sell it today you would earn a total of 13.00 from holding Gtn or generate 28.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epsilon Healthcare vs. Gtn
Performance |
| Timeline |
| Epsilon Healthcare |
| Gtn |
Epsilon Healthcare and Gtn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epsilon Healthcare and Gtn
The main advantage of trading using opposite Epsilon Healthcare and Gtn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epsilon Healthcare position performs unexpectedly, Gtn 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 Gtn will offset losses from the drop in Gtn's long position.| Epsilon Healthcare vs. FireFly Metals | Epsilon Healthcare vs. Falcon Metals | Epsilon Healthcare vs. Dalaroo Metals | Epsilon Healthcare vs. Collins Foods |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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