Correlation Between EHEALTH and DETALION GAMES
Can any of the company-specific risk be diversified away by investing in both EHEALTH and DETALION GAMES 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 EHEALTH and DETALION GAMES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EHEALTH and DETALION GAMES SA, you can compare the effects of market volatilities on EHEALTH and DETALION GAMES 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 EHEALTH with a short position of DETALION GAMES. Check out your portfolio center. Please also check ongoing floating volatility patterns of EHEALTH and DETALION GAMES.
Diversification Opportunities for EHEALTH and DETALION GAMES
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between EHEALTH and DETALION is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding EHEALTH and DETALION GAMES SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DETALION GAMES SA and EHEALTH 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 EHEALTH are associated (or correlated) with DETALION GAMES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DETALION GAMES SA has no effect on the direction of EHEALTH i.e., EHEALTH and DETALION GAMES go up and down completely randomly.
Pair Corralation between EHEALTH and DETALION GAMES
Assuming the 90 days trading horizon EHEALTH is expected to generate 1.47 times more return on investment than DETALION GAMES. However, EHEALTH is 1.47 times more volatile than DETALION GAMES SA. It trades about 0.24 of its potential returns per unit of risk. DETALION GAMES SA is currently generating about 0.01 per unit of risk. If you would invest 416.00 in EHEALTH on October 19, 2024 and sell it today you would earn a total of 515.00 from holding EHEALTH or generate 123.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EHEALTH vs. DETALION GAMES SA
Performance |
| Timeline |
| EHEALTH |
| DETALION GAMES SA |
EHEALTH and DETALION GAMES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EHEALTH and DETALION GAMES
The main advantage of trading using opposite EHEALTH and DETALION GAMES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EHEALTH position performs unexpectedly, DETALION GAMES 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 DETALION GAMES will offset losses from the drop in DETALION GAMES's long position.| EHEALTH vs. Firan Technology Group | EHEALTH vs. Adtalem Global Education | EHEALTH vs. TAL Education Group | EHEALTH vs. Check Point Software |
| DETALION GAMES vs. Sanyo Chemical Industries | DETALION GAMES vs. Mitsui Chemicals | DETALION GAMES vs. Yuexiu Transport Infrastructure | DETALION GAMES vs. KINGBOARD CHEMICAL |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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