Correlation Between Indo Global and Epazz
Can any of the company-specific risk be diversified away by investing in both Indo Global and Epazz 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 Indo Global and Epazz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Indo Global Exchange and Epazz Inc, you can compare the effects of market volatilities on Indo Global and Epazz 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 Indo Global with a short position of Epazz. Check out your portfolio center. Please also check ongoing floating volatility patterns of Indo Global and Epazz.
Diversification Opportunities for Indo Global and Epazz
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Indo and Epazz is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Indo Global Exchange and Epazz Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epazz Inc and Indo Global 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 Indo Global Exchange are associated (or correlated) with Epazz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epazz Inc has no effect on the direction of Indo Global i.e., Indo Global and Epazz go up and down completely randomly.
Pair Corralation between Indo Global and Epazz
Given the investment horizon of 90 days Indo Global Exchange is expected to generate 0.57 times more return on investment than Epazz. However, Indo Global Exchange is 1.74 times less risky than Epazz. It trades about 0.13 of its potential returns per unit of risk. Epazz Inc is currently generating about 0.03 per unit of risk. If you would invest 0.05 in Indo Global Exchange on August 24, 2024 and sell it today you would earn a total of 0.01 from holding Indo Global Exchange or generate 20.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Indo Global Exchange vs. Epazz Inc
Performance |
| Timeline |
| Indo Global Exchange |
| Epazz Inc |
Indo Global and Epazz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Indo Global and Epazz
The main advantage of trading using opposite Indo Global and Epazz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Indo Global position performs unexpectedly, Epazz 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 Epazz will offset losses from the drop in Epazz's long position.| Indo Global vs. Cann American Corp | Indo Global vs. GelStat Corp | Indo Global vs. Green Cures Botanical | Indo Global vs. For The Earth |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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