Correlation Between Mix Telemats and EGain

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

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

Diversification Opportunities for Mix Telemats and EGain

0.42

Correlation Coefficient

Mix Telemats  EGain

Very weak diversification

The 3 months correlation between Mix and EGain is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Mix Telemats and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and Mix Telemats 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 Mix Telemats 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 Mix Telemats i.e., Mix Telemats and EGain go up and down completely randomly.

Pair Corralation between Mix Telemats and EGain

Given the investment horizon of 90 days Mix Telemats is expected to generate 0.98 times more return on investment than EGain. However, Mix Telemats is 1.03 times less risky than EGain. It trades about 0.0 of its potential returns per unit of risk. eGain is currently generating about -0.03 per unit of risk. If you would invest  726.00  in Mix Telemats on August 31, 2024 and sell it today you would lose (38.00) from holding Mix Telemats or give up 5.23% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	28.51%
Values	Daily Returns

Mix Telemats  vs.  eGain

Mix Telemats

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mix Telemats has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, Mix Telemats is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

eGain

Risk-Adjusted Performance

0 of 100

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 December 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with Mix Telemats and EGain

The main advantage of trading using opposite Mix Telemats and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mix Telemats 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 Mix Telemats 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.