Correlation Between DecisionPoint Systems and EGain

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

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

Diversification Opportunities for DecisionPoint Systems and EGain

0.0

Correlation Coefficient

DecisionPoint Systems  EGain

Pay attention - limited upside

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

Pair Corralation between DecisionPoint Systems and EGain

If you would invest (100.00) in DecisionPoint Systems on December 30, 2024 and sell it today you would earn a total of  100.00  from holding DecisionPoint Systems or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

DecisionPoint Systems  vs.  eGain

DecisionPoint Systems

Risk-Adjusted Performance

Very Weak

Over the last 90 days DecisionPoint Systems has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, DecisionPoint Systems is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

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 DecisionPoint Systems and EGain

The main advantage of trading using opposite DecisionPoint Systems and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DecisionPoint Systems 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 DecisionPoint Systems 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.