Correlation Between HEINEKEN and EPSILON HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both HEINEKEN and EPSILON 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 HEINEKEN and EPSILON HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between HEINEKEN SP ADR and EPSILON HEALTHCARE LTD, you can compare the effects of market volatilities on HEINEKEN and EPSILON 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 HEINEKEN with a short position of EPSILON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of HEINEKEN and EPSILON HEALTHCARE.
Diversification Opportunities for HEINEKEN and EPSILON HEALTHCARE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between HEINEKEN and EPSILON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding HEINEKEN SP ADR and EPSILON HEALTHCARE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPSILON HEALTHCARE LTD and HEINEKEN 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 HEINEKEN SP ADR are associated (or correlated) with EPSILON HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPSILON HEALTHCARE LTD has no effect on the direction of HEINEKEN i.e., HEINEKEN and EPSILON HEALTHCARE go up and down completely randomly.
Pair Corralation between HEINEKEN and EPSILON HEALTHCARE
Assuming the 90 days trading horizon HEINEKEN SP ADR is expected to under-perform the EPSILON HEALTHCARE. But the stock apears to be less risky and, when comparing its historical volatility, HEINEKEN SP ADR is 10.99 times less risky than EPSILON HEALTHCARE. The stock trades about -0.02 of its potential returns per unit of risk. The EPSILON HEALTHCARE LTD is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 0.95 in EPSILON HEALTHCARE LTD on September 5, 2024 and sell it today you would lose (0.20) from holding EPSILON HEALTHCARE LTD or give up 21.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
HEINEKEN SP ADR vs. EPSILON HEALTHCARE LTD
Performance |
| Timeline |
| HEINEKEN SP ADR |
| EPSILON HEALTHCARE LTD |
HEINEKEN and EPSILON HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HEINEKEN and EPSILON HEALTHCARE
The main advantage of trading using opposite HEINEKEN and EPSILON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HEINEKEN position performs unexpectedly, EPSILON 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 EPSILON HEALTHCARE will offset losses from the drop in EPSILON HEALTHCARE's long position.| HEINEKEN vs. EPSILON HEALTHCARE LTD | HEINEKEN vs. Sabra Health Care | HEINEKEN vs. National Health Investors | HEINEKEN vs. SHIP HEALTHCARE HLDGINC |
| EPSILON HEALTHCARE vs. MITSUBISHI STEEL MFG | EPSILON HEALTHCARE vs. NIPPON STEEL SPADR | EPSILON HEALTHCARE vs. Khiron Life Sciences | EPSILON HEALTHCARE vs. International Consolidated Airlines |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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