Correlation Between International Consolidated and EPSILON HEALTHCARE
Can any of the company-specific risk be diversified away by investing in both International Consolidated 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 International Consolidated and EPSILON HEALTHCARE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between International Consolidated Airlines and EPSILON HEALTHCARE LTD, you can compare the effects of market volatilities on International Consolidated 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 International Consolidated with a short position of EPSILON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of International Consolidated and EPSILON HEALTHCARE.
Diversification Opportunities for International Consolidated and EPSILON HEALTHCARE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between International and EPSILON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding International Consolidated Air 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 International Consolidated 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 International Consolidated Airlines 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 International Consolidated i.e., International Consolidated and EPSILON HEALTHCARE go up and down completely randomly.
Pair Corralation between International Consolidated and EPSILON HEALTHCARE
If you would invest 189.00 in International Consolidated Airlines on September 5, 2024 and sell it today you would earn a total of 116.00 from holding International Consolidated Airlines or generate 61.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 98.84% |
| Values | Daily Returns |
International Consolidated Air vs. EPSILON HEALTHCARE LTD
Performance |
| Timeline |
| International Consolidated |
| EPSILON HEALTHCARE LTD |
International Consolidated and EPSILON HEALTHCARE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with International Consolidated and EPSILON HEALTHCARE
The main advantage of trading using opposite International Consolidated and EPSILON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if International Consolidated 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.| International Consolidated vs. Delta Air Lines | International Consolidated vs. AIR CHINA LTD | International Consolidated vs. RYANAIR HLDGS ADR | International Consolidated vs. China Southern Airlines |
| 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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