Correlation Between Sure Tech and Epitomee Medical
Can any of the company-specific risk be diversified away by investing in both Sure Tech 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 Sure Tech and Epitomee Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sure Tech Investments LP and Epitomee Medical, you can compare the effects of market volatilities on Sure Tech 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 Sure Tech with a short position of Epitomee Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sure Tech and Epitomee Medical.
Diversification Opportunities for Sure Tech and Epitomee Medical
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Sure and Epitomee is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Sure Tech Investments LP and Epitomee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epitomee Medical and Sure Tech 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 Sure Tech Investments LP 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 Sure Tech i.e., Sure Tech and Epitomee Medical go up and down completely randomly.
Pair Corralation between Sure Tech and Epitomee Medical
Assuming the 90 days trading horizon Sure Tech Investments LP is expected to generate 0.64 times more return on investment than Epitomee Medical. However, Sure Tech Investments LP is 1.57 times less risky than Epitomee Medical. It trades about 0.32 of its potential returns per unit of risk. Epitomee Medical is currently generating about 0.04 per unit of risk. If you would invest 56,370 in Sure Tech Investments LP on October 10, 2024 and sell it today you would earn a total of 15,040 from holding Sure Tech Investments LP or generate 26.68% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Sure Tech Investments LP vs. Epitomee Medical
Performance |
Timeline |
Sure Tech Investments |
Epitomee Medical |
Sure Tech and Epitomee Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sure Tech and Epitomee Medical
The main advantage of trading using opposite Sure Tech and Epitomee Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sure Tech 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.Sure Tech vs. Rapac Communication Infrastructure | Sure Tech vs. Abra Information Technologies | Sure Tech vs. Victory Supermarket Chain | Sure Tech vs. Iargento Hi Tech |
Epitomee Medical vs. Intercure | Epitomee Medical vs. Bio View | Epitomee Medical vs. Elbit Imaging | Epitomee Medical vs. Insuline Medical |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |