Correlation Between GivBux and EPlus

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

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

Diversification Opportunities for GivBux and EPlus

-0.59

Correlation Coefficient

GivBux  EPlus

Excellent diversification

The 3 months correlation between GivBux and EPlus is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding GivBux Inc and ePlus inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ePlus inc and GivBux 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 GivBux Inc are associated (or correlated) with EPlus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ePlus inc has no effect on the direction of GivBux i.e., GivBux and EPlus go up and down completely randomly.

Pair Corralation between GivBux and EPlus

Given the investment horizon of 90 days GivBux Inc is expected to generate 7.37 times more return on investment than EPlus. However, GivBux is 7.37 times more volatile than ePlus inc. It trades about 0.23 of its potential returns per unit of risk. ePlus inc is currently generating about -0.08 per unit of risk. If you would invest  120.00  in GivBux Inc on December 28, 2024 and sell it today you would earn a total of  505.00  from holding GivBux Inc or generate 420.83% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	95.24%
Values	Daily Returns

GivBux Inc  vs.  ePlus inc

GivBux Inc

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in GivBux Inc are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, GivBux showed solid returns over the last few months and may actually be approaching a breakup point.

ePlus inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days ePlus inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the 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 GivBux and EPlus

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

The idea behind GivBux Inc and ePlus inc 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.