Correlation Between Trust Stamp and EGain
Can any of the company-specific risk be diversified away by investing in both Trust Stamp and EGain 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 Trust Stamp and EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Trust Stamp and eGain, you can compare the effects of market volatilities on Trust Stamp and EGain 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 Trust Stamp with a short position of EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Trust Stamp and EGain.
Diversification Opportunities for Trust Stamp and EGain
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Trust and EGain is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Trust Stamp and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and Trust Stamp 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 Trust Stamp are associated (or correlated) with EGain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eGain has no effect on the direction of Trust Stamp i.e., Trust Stamp and EGain go up and down completely randomly.
Pair Corralation between Trust Stamp and EGain
Given the investment horizon of 90 days Trust Stamp is expected to under-perform the EGain. In addition to that, Trust Stamp is 1.98 times more volatile than eGain. It trades about -0.08 of its total potential returns per unit of risk. eGain is currently generating about 0.12 per unit of volatility. If you would invest 482.00 in eGain on August 25, 2024 and sell it today you would earn a total of 51.00 from holding eGain or generate 10.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Trust Stamp vs. eGain
Performance |
| Timeline |
| Trust Stamp |
| eGain |
Trust Stamp and EGain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Trust Stamp and EGain
The main advantage of trading using opposite Trust Stamp and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Trust Stamp position performs unexpectedly, EGain 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 EGain will offset losses from the drop in EGain's long position.| Trust Stamp vs. HeartCore Enterprises | Trust Stamp vs. Quhuo | Trust Stamp vs. Infobird Co | Trust Stamp vs. Beamr Imaging Ltd |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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