Correlation Between Park City and EGain
Can any of the company-specific risk be diversified away by investing in both Park City 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 Park City and EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Park City Group and eGain, you can compare the effects of market volatilities on Park City 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 Park City with a short position of EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Park City and EGain.
Diversification Opportunities for Park City and EGain
Good diversification
The 3 months correlation between Park and EGain is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Park City Group and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and Park City 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 Park City Group 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 Park City i.e., Park City and EGain go up and down completely randomly.
Pair Corralation between Park City and EGain
If you would invest 492.00 in eGain on September 1, 2024 and sell it today you would earn a total of 41.00 from holding eGain or generate 8.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
Park City Group vs. eGain
Performance |
| Timeline |
| Park City Group |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| eGain |
Park City and EGain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Park City and EGain
The main advantage of trading using opposite Park City and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Park City 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.| Park City vs. Red Violet | Park City vs. Issuer Direct Corp | Park City vs. Research Solutions | Park City vs. Rayont 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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