Correlation Between EPSILON HEALTHCARE and Westag Getalit

Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and Westag Getalit 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 Westag Getalit 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 Westag Getalit AG, you can compare the effects of market volatilities on EPSILON HEALTHCARE and Westag Getalit 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 Westag Getalit. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and Westag Getalit.

Diversification Opportunities for EPSILON HEALTHCARE and Westag Getalit

0.0

Correlation Coefficient

EPSILON HEALTHCARE  Westag Getalit

Pay attention - limited upside

The 3 months correlation between EPSILON and Westag is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EPSILON HEALTHCARE LTD and Westag Getalit AG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westag Getalit AG 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 Westag Getalit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westag Getalit AG has no effect on the direction of EPSILON HEALTHCARE i.e., EPSILON HEALTHCARE and Westag Getalit go up and down completely randomly.

Pair Corralation between EPSILON HEALTHCARE and Westag Getalit

If you would invest  2,400  in Westag Getalit AG on October 14, 2024 and sell it today you would earn a total of  20.00  from holding Westag Getalit AG or generate 0.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	94.12%
Values	Daily Returns

EPSILON HEALTHCARE LTD  vs.  Westag Getalit AG

EPSILON HEALTHCARE LTD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days EPSILON HEALTHCARE LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable technical indicators, EPSILON HEALTHCARE is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Westag Getalit AG

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Westag Getalit AG has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Preferred Stock's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the firm private investors.

Pair Trading with EPSILON HEALTHCARE and Westag Getalit

The main advantage of trading using opposite EPSILON HEALTHCARE and Westag Getalit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPSILON HEALTHCARE position performs unexpectedly, Westag Getalit 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 Westag Getalit will offset losses from the drop in Westag Getalit's long position.

The idea behind EPSILON HEALTHCARE LTD and Westag Getalit AG pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.