Correlation Between EPSILON HEALTHCARE and Centrotec
Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and Centrotec 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 EPSILON HEALTHCARE and Centrotec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EPSILON HEALTHCARE LTD and Centrotec SE, you can compare the effects of market volatilities on EPSILON HEALTHCARE and Centrotec 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 EPSILON HEALTHCARE with a short position of Centrotec. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and Centrotec.
Diversification Opportunities for EPSILON HEALTHCARE and Centrotec
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPSILON and Centrotec is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and Centrotec SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centrotec SE and EPSILON HEALTHCARE 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 EPSILON HEALTHCARE LTD are associated (or correlated) with Centrotec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centrotec SE has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and Centrotec go up and down completely randomly.
Pair Corralation between EPSILON HEALTHCARE and Centrotec
If you would invest 4,976 in Centrotec SE on December 5, 2024 and sell it today you would earn a total of 1,924 from holding Centrotec SE or generate 38.67% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 99.57% |
Values | Daily Returns |
EPSILON HEALTHCARE LTD vs. Centrotec SE
Performance |
Timeline |
EPSILON HEALTHCARE LTD |
Centrotec SE |
EPSILON HEALTHCARE and Centrotec Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with EPSILON HEALTHCARE and Centrotec
The main advantage of trading using opposite EPSILON HEALTHCARE and Centrotec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, Centrotec 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 Centrotec will offset losses from the drop in Centrotec's long position.EPSILON HEALTHCARE vs. Easy Software AG | EPSILON HEALTHCARE vs. Magic Software Enterprises | EPSILON HEALTHCARE vs. Platinum Investment Management | EPSILON HEALTHCARE vs. FORMPIPE SOFTWARE AB |
Centrotec vs. MOVIE GAMES SA | Centrotec vs. TIANDE CHEMICAL | Centrotec vs. Silicon Motion Technology | Centrotec vs. X FAB Silicon Foundries |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
CEOs Directory Screen CEOs from public companies around the world | |
Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |