Correlation Between Epsilon Healthcare and Regis Healthcare
Can any of the company-specific risk be diversified away by investing in both Epsilon Healthcare and Regis Healthcare 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 Regis Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Epsilon Healthcare and Regis Healthcare, you can compare the effects of market volatilities on Epsilon Healthcare and Regis Healthcare 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 Regis Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epsilon Healthcare and Regis Healthcare.
Diversification Opportunities for Epsilon Healthcare and Regis Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Epsilon and Regis is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Epsilon Healthcare and Regis Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Regis Healthcare 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 Regis Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Regis Healthcare has no effect on the direction of Epsilon Healthcare i.e., Epsilon Healthcare and Regis Healthcare go up and down completely randomly.
Pair Corralation between Epsilon Healthcare and Regis Healthcare
If you would invest 513.00 in Regis Healthcare on September 2, 2024 and sell it today you would earn a total of 155.00 from holding Regis Healthcare or generate 30.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epsilon Healthcare vs. Regis Healthcare
Performance |
| Timeline |
| Epsilon Healthcare |
| Regis Healthcare |
Epsilon Healthcare and Regis Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epsilon Healthcare and Regis Healthcare
The main advantage of trading using opposite Epsilon Healthcare and Regis Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epsilon Healthcare position performs unexpectedly, Regis Healthcare 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 Regis Healthcare will offset losses from the drop in Regis Healthcare's long position.| Epsilon Healthcare vs. Aneka Tambang Tbk | Epsilon Healthcare vs. Woolworths | Epsilon Healthcare vs. Commonwealth Bank | Epsilon Healthcare vs. BHP Group Limited |
| Regis Healthcare vs. Westpac Banking | Regis Healthcare vs. iShares Global Healthcare | Regis Healthcare vs. Australian Dairy Farms | Regis Healthcare vs. Adriatic Metals Plc |
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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