Correlation Between Epsilon Healthcare and Southern Cross
Can any of the company-specific risk be diversified away by investing in both Epsilon Healthcare and Southern Cross 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 Southern Cross into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Epsilon Healthcare and Southern Cross Media, you can compare the effects of market volatilities on Epsilon Healthcare and Southern Cross 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 Southern Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epsilon Healthcare and Southern Cross.
Diversification Opportunities for Epsilon Healthcare and Southern Cross
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Epsilon and Southern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Epsilon Healthcare and Southern Cross Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Cross Media 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 Southern Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Cross Media has no effect on the direction of Epsilon Healthcare i.e., Epsilon Healthcare and Southern Cross go up and down completely randomly.
Pair Corralation between Epsilon Healthcare and Southern Cross
If you would invest 60.00 in Southern Cross Media on November 6, 2024 and sell it today you would earn a total of 2.00 from holding Southern Cross Media or generate 3.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epsilon Healthcare vs. Southern Cross Media
Performance |
| Timeline |
| Epsilon Healthcare |
| Southern Cross Media |
Epsilon Healthcare and Southern Cross Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epsilon Healthcare and Southern Cross
The main advantage of trading using opposite Epsilon Healthcare and Southern Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epsilon Healthcare position performs unexpectedly, Southern Cross 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 Southern Cross will offset losses from the drop in Southern Cross' long position.| Epsilon Healthcare vs. Beam Communications Holdings | Epsilon Healthcare vs. Commonwealth Bank of | Epsilon Healthcare vs. Ainsworth Game Technology | Epsilon Healthcare vs. COG Financial Services |
| Southern Cross vs. Qbe Insurance Group | Southern Cross vs. Cleanaway Waste Management | Southern Cross vs. Credit Clear | Southern Cross vs. Liberty Financial 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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