Correlation Between ASPEN PHARUNADR and EPSILON HEALTHCARE

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

By analyzing existing cross correlation between ASPEN PHARUNADR 1 and EPSILON HEALTHCARE LTD, you can compare the effects of market volatilities on ASPEN PHARUNADR and EPSILON HEALTHCARE 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 ASPEN PHARUNADR with a short position of EPSILON HEALTHCARE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ASPEN PHARUNADR and EPSILON HEALTHCARE.

Diversification Opportunities for ASPEN PHARUNADR and EPSILON HEALTHCARE

0.0

Correlation Coefficient

ASPEN PHARUNADR  EPSILON HEALTHCARE

Pay attention - limited upside

The 3 months correlation between ASPEN and EPSILON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ASPEN PHARUNADR 1 and EPSILON HEALTHCARE LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPSILON HEALTHCARE LTD and ASPEN PHARUNADR 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 ASPEN PHARUNADR 1 are associated (or correlated) with EPSILON HEALTHCARE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPSILON HEALTHCARE LTD has no effect on the direction of ASPEN PHARUNADR i.e., ASPEN PHARUNADR and EPSILON HEALTHCARE go up and down completely randomly.

Pair Corralation between ASPEN PHARUNADR and EPSILON HEALTHCARE

If you would invest  875.00  in ASPEN PHARUNADR 1 on October 2, 2024 and sell it today you would lose (20.00) from holding ASPEN PHARUNADR 1 or give up 2.29% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

ASPEN PHARUNADR 1  vs.  EPSILON HEALTHCARE LTD

ASPEN PHARUNADR 1

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ASPEN PHARUNADR 1 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain nearly stable which may send shares a bit higher in January 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

EPSILON HEALTHCARE LTD

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with ASPEN PHARUNADR and EPSILON HEALTHCARE

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

The idea behind ASPEN PHARUNADR 1 and EPSILON HEALTHCARE LTD 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.