Correlation Between EPlus and Intellinetics

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

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

Diversification Opportunities for EPlus and Intellinetics

0.76

Correlation Coefficient

EPlus  Intellinetics

Poor diversification

The 3 months correlation between EPlus and Intellinetics is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding ePlus inc and Intellinetics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intellinetics 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 Intellinetics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intellinetics has no effect on the direction of EPlus i.e., EPlus and Intellinetics go up and down completely randomly.

Pair Corralation between EPlus and Intellinetics

Given the investment horizon of 90 days ePlus inc is expected to under-perform the Intellinetics. But the stock apears to be less risky and, when comparing its historical volatility, ePlus inc is 1.31 times less risky than Intellinetics. The stock trades about -0.11 of its potential returns per unit of risk. The Intellinetics is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest  1,375  in Intellinetics on December 31, 2024 and sell it today you would lose (163.00) from holding Intellinetics or give up 11.85% of portfolio value over 90 days.

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

ePlus inc  vs.  Intellinetics

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 unfluctuating performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in May 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Intellinetics

Risk-Adjusted Performance

Very Weak

Over the last 90 days Intellinetics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest fragile performance, the Stock's essential indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Pair Trading with EPlus and Intellinetics

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

The idea behind ePlus inc and Intellinetics 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.