Correlation Between Safe T and Epitomee Medical
Can any of the company-specific risk be diversified away by investing in both Safe T and Epitomee Medical 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 Safe T and Epitomee Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Safe T Group and Epitomee Medical, you can compare the effects of market volatilities on Safe T and Epitomee Medical 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 Safe T with a short position of Epitomee Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Safe T and Epitomee Medical.
Diversification Opportunities for Safe T and Epitomee Medical
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Safe and Epitomee is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Safe T Group and Epitomee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epitomee Medical and Safe T 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 Safe T Group are associated (or correlated) with Epitomee Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epitomee Medical has no effect on the direction of Safe T i.e., Safe T and Epitomee Medical go up and down completely randomly.
Pair Corralation between Safe T and Epitomee Medical
Assuming the 90 days trading horizon Safe T Group is expected to generate 1.13 times more return on investment than Epitomee Medical. However, Safe T is 1.13 times more volatile than Epitomee Medical. It trades about -0.13 of its potential returns per unit of risk. Epitomee Medical is currently generating about -0.25 per unit of risk. If you would invest 56,600 in Safe T Group on August 29, 2024 and sell it today you would lose (7,200) from holding Safe T Group or give up 12.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Safe T Group vs. Epitomee Medical
Performance |
| Timeline |
| Safe T Group |
| Epitomee Medical |
Safe T and Epitomee Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Safe T and Epitomee Medical
The main advantage of trading using opposite Safe T and Epitomee Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Safe T position performs unexpectedly, Epitomee Medical 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 Epitomee Medical will offset losses from the drop in Epitomee Medical's long position.| Safe T vs. One Software Technologies | Safe T vs. Abra Information Technologies | Safe T vs. Ai Conversation Systems | Safe T vs. Fantasy Network |
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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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