Correlation Between NuGene International and Epazz
Can any of the company-specific risk be diversified away by investing in both NuGene International 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 NuGene International and Epazz into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NuGene International and Epazz Inc, you can compare the effects of market volatilities on NuGene International 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 NuGene International with a short position of Epazz. Check out your portfolio center. Please also check ongoing floating volatility patterns of NuGene International and Epazz.
Diversification Opportunities for NuGene International and Epazz
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NuGene and Epazz is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding NuGene International and Epazz Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epazz Inc and NuGene International 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 NuGene International 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 NuGene International i.e., NuGene International and Epazz go up and down completely randomly.
Pair Corralation between NuGene International and Epazz
Given the investment horizon of 90 days NuGene International is expected to under-perform the Epazz. In addition to that, NuGene International is 1.11 times more volatile than Epazz Inc. It trades about -0.01 of its total potential returns per unit of risk. Epazz Inc is currently generating about 0.0 per unit of volatility. If you would invest 0.12 in Epazz Inc on August 24, 2024 and sell it today you would lose (0.08) from holding Epazz Inc or give up 66.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NuGene International vs. Epazz Inc
Performance |
| Timeline |
| NuGene International |
| Epazz Inc |
NuGene International and Epazz Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NuGene International and Epazz
The main advantage of trading using opposite NuGene International and Epazz positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NuGene International 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.| NuGene International vs. American Leisure Holdings | NuGene International vs. Embrace Change Acquisition | NuGene International vs. TransAKT | NuGene International vs. HUMANA INC |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stocks Directory Find actively traded stocks across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |