Correlation Between Sims Metal and EPSILON HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both Sims Metal 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 Sims Metal and EPSILON HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sims Metal Management and EPSILON HEALTHCARE LTD, you can compare the effects of market volatilities on Sims Metal 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 Sims Metal with a short position of EPSILON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sims Metal and EPSILON HEALTHCARE.
Diversification Opportunities for Sims Metal and EPSILON HEALTHCARE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sims and EPSILON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sims Metal Management 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 Sims Metal 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 Sims Metal Management 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 Sims Metal i.e., Sims Metal and EPSILON HEALTHCARE go up and down completely randomly.
Pair Corralation between Sims Metal and EPSILON HEALTHCARE
If you would invest 642.00 in Sims Metal Management on September 3, 2024 and sell it today you would earn a total of 158.00 from holding Sims Metal Management or generate 24.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.22% |
| Values | Daily Returns |
Sims Metal Management vs. EPSILON HEALTHCARE LTD
Performance |
| Timeline |
| Sims Metal Management |
| EPSILON HEALTHCARE LTD |
Sims Metal and EPSILON HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sims Metal and EPSILON HEALTHCARE
The main advantage of trading using opposite Sims Metal and EPSILON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sims Metal 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.| Sims Metal vs. ArcelorMittal | Sims Metal vs. Steel Dynamics | Sims Metal vs. NIPPON STEEL SPADR | Sims Metal vs. POSCO Holdings |
| EPSILON HEALTHCARE vs. Scientific Games | EPSILON HEALTHCARE vs. Entravision Communications | EPSILON HEALTHCARE vs. Zoom Video Communications | EPSILON HEALTHCARE vs. China Communications Services |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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