Correlation Between Agent Information and EGain

Can any of the company-specific risk be diversified away by investing in both Agent Information 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 Agent Information and EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Agent Information Software and eGain, you can compare the effects of market volatilities on Agent Information 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 Agent Information with a short position of EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agent Information and EGain.

Diversification Opportunities for Agent Information and EGain

0.39

Correlation Coefficient

Agent Information  EGain

Weak diversification

The 3 months correlation between Agent and EGain is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Agent Information Software and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and Agent Information 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 Agent Information Software 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 Agent Information i.e., Agent Information and EGain go up and down completely randomly.

Pair Corralation between Agent Information and EGain

Given the investment horizon of 90 days Agent Information Software is expected to under-perform the EGain. But the pink sheet apears to be less risky and, when comparing its historical volatility, Agent Information Software is 1.67 times less risky than EGain. The pink sheet trades about -0.19 of its potential returns per unit of risk. The eGain is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest  629.00  in eGain on December 27, 2024 and sell it today you would lose (135.00) from holding eGain or give up 21.46% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	96.83%
Values	Daily Returns

Agent Information Software  vs.  eGain

Agent Information

Risk-Adjusted Performance

Very Weak

Over the last 90 days Agent Information Software has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

eGain

Risk-Adjusted Performance

Very Weak

Over the last 90 days eGain has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in April 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Agent Information and EGain

The main advantage of trading using opposite Agent Information and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agent Information 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.

The idea behind Agent Information Software and eGain 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.