Correlation Between Woolworths and Epsilon Healthcare
Can any of the company-specific risk be diversified away by investing in both Woolworths and Epsilon Healthcare 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 Woolworths and Epsilon Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Woolworths and Epsilon Healthcare, you can compare the effects of market volatilities on Woolworths and Epsilon Healthcare 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 Woolworths with a short position of Epsilon Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Woolworths and Epsilon Healthcare.
Diversification Opportunities for Woolworths and Epsilon Healthcare
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Woolworths and Epsilon is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Woolworths and Epsilon Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epsilon Healthcare and Woolworths 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 Woolworths are associated (or correlated) with Epsilon Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epsilon Healthcare has no effect on the direction of Woolworths i.e., Woolworths and Epsilon Healthcare go up and down completely randomly.
Pair Corralation between Woolworths and Epsilon Healthcare
If you would invest 3,015 in Woolworths on September 3, 2024 and sell it today you would earn a total of 3.00 from holding Woolworths or generate 0.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Woolworths vs. Epsilon Healthcare
Performance |
| Timeline |
| Woolworths |
| Epsilon Healthcare |
Woolworths and Epsilon Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Woolworths and Epsilon Healthcare
The main advantage of trading using opposite Woolworths and Epsilon Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Woolworths position performs unexpectedly, Epsilon Healthcare 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 Epsilon Healthcare will offset losses from the drop in Epsilon Healthcare's long position.| Woolworths vs. BSP Financial Group | Woolworths vs. Credit Clear | Woolworths vs. Lendlease Group | Woolworths vs. MA Financial Group |
| Epsilon Healthcare vs. TTG Fintech | Epsilon Healthcare vs. Land Homes Group | Epsilon Healthcare vs. Regis Healthcare | Epsilon Healthcare vs. Horseshoe Metals |
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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |