Correlation Between EPlus and GivBux
Can any of the company-specific risk be diversified away by investing in both EPlus and GivBux 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 EPlus and GivBux into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ePlus inc and GivBux Inc, you can compare the effects of market volatilities on EPlus and GivBux 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 EPlus with a short position of GivBux. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPlus and GivBux.
Diversification Opportunities for EPlus and GivBux
Very good diversification
The 3 months correlation between EPlus and GivBux is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding ePlus inc and GivBux Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GivBux Inc and EPlus 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 ePlus inc are associated (or correlated) with GivBux. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GivBux Inc has no effect on the direction of EPlus i.e., EPlus and GivBux go up and down completely randomly.
Pair Corralation between EPlus and GivBux
Given the investment horizon of 90 days EPlus is expected to generate 8.35 times less return on investment than GivBux. But when comparing it to its historical volatility, ePlus inc is 8.2 times less risky than GivBux. It trades about 0.06 of its potential returns per unit of risk. GivBux Inc is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 233.00 in GivBux Inc on September 3, 2024 and sell it today you would lose (158.00) from holding GivBux Inc or give up 67.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ePlus inc vs. GivBux Inc
Performance |
| Timeline |
| ePlus inc |
| GivBux Inc |
EPlus and GivBux Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPlus and GivBux
The main advantage of trading using opposite EPlus and GivBux positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPlus position performs unexpectedly, GivBux 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 GivBux will offset losses from the drop in GivBux's long position.The idea behind ePlus inc and GivBux Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Stocks Directory Find actively traded stocks across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |