Correlation Between Epazz and Applovin Corp

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

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

Diversification Opportunities for Epazz and Applovin Corp

-0.49

Correlation Coefficient

Epazz  Applovin Corp

Very good diversification

The 3 months correlation between Epazz and Applovin is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Epazz Inc and Applovin Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applovin Corp and Epazz 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 Epazz Inc are associated (or correlated) with Applovin Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applovin Corp has no effect on the direction of Epazz i.e., Epazz and Applovin Corp go up and down completely randomly.

Pair Corralation between Epazz and Applovin Corp

Given the investment horizon of 90 days Epazz Inc is expected to generate 3.69 times more return on investment than Applovin Corp. However, Epazz is 3.69 times more volatile than Applovin Corp. It trades about 0.15 of its potential returns per unit of risk. Applovin Corp is currently generating about 0.16 per unit of risk. If you would invest  0.04  in Epazz Inc on September 14, 2024 and sell it today you would earn a total of  0.01  from holding Epazz Inc or generate 25.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.45%
Values	Daily Returns

Epazz Inc  vs.  Applovin Corp

Epazz Inc

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Epazz Inc are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unfluctuating basic indicators, Epazz showed solid returns over the last few months and may actually be approaching a breakup point.

Applovin Corp

Risk-Adjusted Performance

20 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Applovin Corp are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Applovin Corp reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Epazz and Applovin Corp

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

The idea behind Epazz Inc and Applovin Corp 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.