Correlation Between Society Pass and EGain
Can any of the company-specific risk be diversified away by investing in both Society Pass 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 Society Pass and EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Society Pass and eGain, you can compare the effects of market volatilities on Society Pass 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 Society Pass with a short position of EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Society Pass and EGain.
Diversification Opportunities for Society Pass and EGain
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Society and EGain is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Society Pass and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and Society Pass 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 Society Pass 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 Society Pass i.e., Society Pass and EGain go up and down completely randomly.
Pair Corralation between Society Pass and EGain
Given the investment horizon of 90 days Society Pass is expected to under-perform the EGain. But the stock apears to be less risky and, when comparing its historical volatility, Society Pass is 1.17 times less risky than EGain. The stock trades about -0.07 of its potential returns per unit of risk. The eGain is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 537.00 in eGain on September 14, 2024 and sell it today you would earn a total of 28.00 from holding eGain or generate 5.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Society Pass vs. eGain
Performance |
| Timeline |
| Society Pass |
| eGain |
Society Pass and EGain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Society Pass and EGain
The main advantage of trading using opposite Society Pass and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Society Pass 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.| Society Pass vs. Paltalk | Society Pass vs. Sphere 3D Corp | Society Pass vs. Marin Software | Society Pass vs. EzFill Holdings |
| 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |