Correlation Between EPlus and PowerFleet,

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

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

Diversification Opportunities for EPlus and PowerFleet,

-0.73

Correlation Coefficient

EPlus  PowerFleet,

Pay attention - limited upside

The 3 months correlation between EPlus and PowerFleet, is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding ePlus inc and PowerFleet, in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PowerFleet, and EPlus 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 ePlus inc are associated (or correlated) with PowerFleet,. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PowerFleet, has no effect on the direction of EPlus i.e., EPlus and PowerFleet, go up and down completely randomly.

Pair Corralation between EPlus and PowerFleet,

Given the investment horizon of 90 days EPlus is expected to generate 3.56 times less return on investment than PowerFleet,. But when comparing it to its historical volatility, ePlus inc is 1.51 times less risky than PowerFleet,. It trades about 0.04 of its potential returns per unit of risk. PowerFleet, is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  453.00  in PowerFleet, on September 12, 2024 and sell it today you would earn a total of  233.00  from holding PowerFleet, or generate 51.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

ePlus inc  vs.  PowerFleet,

ePlus inc

Risk-Adjusted Performance

0 of 100

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 uncertain 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.

PowerFleet,

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in PowerFleet, are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady basic indicators, PowerFleet, unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EPlus and PowerFleet,

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

The idea behind ePlus inc and PowerFleet, 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.

Check out your portfolio center.

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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.