Correlation Between CoinSmart Financial and EGain

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

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

Diversification Opportunities for CoinSmart Financial and EGain

0.0

Correlation Coefficient

CoinSmart Financial  EGain

Pay attention - limited upside

The 3 months correlation between CoinSmart and EGain is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CoinSmart Financial and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and CoinSmart Financial 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 CoinSmart Financial 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 CoinSmart Financial i.e., CoinSmart Financial and EGain go up and down completely randomly.

Pair Corralation between CoinSmart Financial and EGain

If you would invest  15.00  in CoinSmart Financial on September 3, 2024 and sell it today you would earn a total of  0.00  from holding CoinSmart Financial or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	1.56%
Values	Daily Returns

CoinSmart Financial  vs.  eGain

CoinSmart Financial

Risk-Adjusted Performance

0 of 100

Very Weak

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

eGain

Risk-Adjusted Performance

0 of 100

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 January 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with CoinSmart Financial and EGain

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

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.