Correlation Between Investview and EGain

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

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

Diversification Opportunities for Investview and EGain

0.05

Correlation Coefficient

Investview  EGain

Significant diversification

The 3 months correlation between Investview and EGain is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Investview and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and Investview 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 Investview 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 Investview i.e., Investview and EGain go up and down completely randomly.

Pair Corralation between Investview and EGain

Given the investment horizon of 90 days Investview is expected to generate 2.55 times more return on investment than EGain. However, Investview is 2.55 times more volatile than eGain. It trades about 0.15 of its potential returns per unit of risk. eGain is currently generating about -0.04 per unit of risk. If you would invest  1.00  in Investview on December 21, 2024 and sell it today you would earn a total of  0.89  from holding Investview or generate 89.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.36%
Values	Daily Returns

Investview  vs.  eGain

Investview

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Investview are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively abnormal basic indicators, Investview unveiled solid returns over the last few months and may actually be approaching a breakup point.

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 latest fragile performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Pair Trading with Investview and EGain

The main advantage of trading using opposite Investview and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Investview 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 Investview 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.