Correlation Between Kaspien Holdings and EGain
Can any of the company-specific risk be diversified away by investing in both Kaspien Holdings 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 Kaspien Holdings and EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Kaspien Holdings and eGain, you can compare the effects of market volatilities on Kaspien Holdings 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 Kaspien Holdings with a short position of EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kaspien Holdings and EGain.
Diversification Opportunities for Kaspien Holdings and EGain
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kaspien and EGain is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Kaspien Holdings and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and Kaspien Holdings 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 Kaspien Holdings 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 Kaspien Holdings i.e., Kaspien Holdings and EGain go up and down completely randomly.
Pair Corralation between Kaspien Holdings and EGain
Given the investment horizon of 90 days Kaspien Holdings is expected to under-perform the EGain. In addition to that, Kaspien Holdings is 3.52 times more volatile than eGain. It trades about -0.03 of its total potential returns per unit of risk. eGain is currently generating about -0.02 per unit of volatility. If you would invest 840.00 in eGain on August 27, 2024 and sell it today you would lose (307.00) from holding eGain or give up 36.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 27.02% |
| Values | Daily Returns |
Kaspien Holdings vs. eGain
Performance |
| Timeline |
| Kaspien Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| eGain |
Kaspien Holdings and EGain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kaspien Holdings and EGain
The main advantage of trading using opposite Kaspien Holdings and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kaspien Holdings 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.| Kaspien Holdings vs. Quoin Pharmaceuticals Ltd | Kaspien Holdings vs. Intelligent Living Application | Kaspien Holdings vs. Revelation Biosciences | Kaspien Holdings vs. Virax Biolabs Group |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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