Correlation Between Epsilon Healthcare and Sequoia Financial
Can any of the company-specific risk be diversified away by investing in both Epsilon Healthcare and Sequoia Financial 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 Sequoia Financial into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Epsilon Healthcare and Sequoia Financial Group, you can compare the effects of market volatilities on Epsilon Healthcare and Sequoia Financial 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 Sequoia Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epsilon Healthcare and Sequoia Financial.
Diversification Opportunities for Epsilon Healthcare and Sequoia Financial
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Epsilon and Sequoia is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Epsilon Healthcare and Sequoia Financial Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sequoia Financial 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 Sequoia Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sequoia Financial has no effect on the direction of Epsilon Healthcare i.e., Epsilon Healthcare and Sequoia Financial go up and down completely randomly.
Pair Corralation between Epsilon Healthcare and Sequoia Financial
If you would invest 36.00 in Sequoia Financial Group on October 14, 2024 and sell it today you would earn a total of 4.00 from holding Sequoia Financial Group or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epsilon Healthcare vs. Sequoia Financial Group
Performance |
| Timeline |
| Epsilon Healthcare |
| Sequoia Financial |
Epsilon Healthcare and Sequoia Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epsilon Healthcare and Sequoia Financial
The main advantage of trading using opposite Epsilon Healthcare and Sequoia Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epsilon Healthcare position performs unexpectedly, Sequoia Financial 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 Sequoia Financial will offset losses from the drop in Sequoia Financial's long position.| Epsilon Healthcare vs. Computershare | Epsilon Healthcare vs. Energy Technologies Limited | Epsilon Healthcare vs. Lendlease Group | Epsilon Healthcare vs. Advanced Braking Technology |
| Sequoia Financial vs. Global Health | Sequoia Financial vs. Falcon Metals | Sequoia Financial vs. Dalaroo Metals | Sequoia Financial vs. Epsilon Healthcare |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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