Correlation Between Mix Telemats and EGain
Can any of the company-specific risk be diversified away by investing in both Mix Telemats 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 Mix Telemats and EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mix Telemats and eGain, you can compare the effects of market volatilities on Mix Telemats 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 Mix Telemats with a short position of EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mix Telemats and EGain.
Diversification Opportunities for Mix Telemats and EGain
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Mix and EGain is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Mix Telemats and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and Mix Telemats 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 Mix Telemats 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 Mix Telemats i.e., Mix Telemats and EGain go up and down completely randomly.
Pair Corralation between Mix Telemats and EGain
If you would invest 513.00 in eGain on August 27, 2024 and sell it today you would earn a total of 20.00 from holding eGain or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Mix Telemats vs. eGain
Performance |
| Timeline |
| Mix Telemats |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| eGain |
Mix Telemats and EGain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mix Telemats and EGain
The main advantage of trading using opposite Mix Telemats and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mix Telemats 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.| Mix Telemats vs. Alkami Technology | Mix Telemats vs. Agilysys | Mix Telemats vs. ADEIA P | Mix Telemats vs. Paycor HCM |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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