Correlation Between Sonic Foundry and EGain
Can any of the company-specific risk be diversified away by investing in both Sonic Foundry 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 Sonic Foundry and EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sonic Foundry and eGain, you can compare the effects of market volatilities on Sonic Foundry 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 Sonic Foundry with a short position of EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sonic Foundry and EGain.
Diversification Opportunities for Sonic Foundry and EGain
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Sonic and EGain is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Sonic Foundry and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and Sonic Foundry 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 Sonic Foundry 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 Sonic Foundry i.e., Sonic Foundry and EGain go up and down completely randomly.
Pair Corralation between Sonic Foundry and EGain
If you would invest 82.00 in Sonic Foundry on November 3, 2024 and sell it today you would earn a total of 0.00 from holding Sonic Foundry or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Sonic Foundry vs. eGain
Performance |
| Timeline |
| Sonic Foundry |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| eGain |
Sonic Foundry and EGain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sonic Foundry and EGain
The main advantage of trading using opposite Sonic Foundry and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sonic Foundry 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.| Sonic Foundry vs. 01 Communique Laboratory | Sonic Foundry vs. LifeSpeak | Sonic Foundry vs. RESAAS Services | Sonic Foundry vs. RenoWorks Software |
| EGain vs. Issuer Direct Corp | EGain vs. Research Solutions | EGain vs. Alkami Technology | EGain vs. Agilysys |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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