Correlation Between YAMATO HOLDINGS and EPSILON HEALTHCARE

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

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

Diversification Opportunities for YAMATO HOLDINGS and EPSILON HEALTHCARE

0.0

Correlation Coefficient

YAMATO HOLDINGS  EPSILON HEALTHCARE

Pay attention - limited upside

The 3 months correlation between YAMATO and EPSILON is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding YAMATO HOLDINGS 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 YAMATO HOLDINGS 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 YAMATO HOLDINGS 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 YAMATO HOLDINGS i.e., YAMATO HOLDINGS and EPSILON HEALTHCARE go up and down completely randomly.

Pair Corralation between YAMATO HOLDINGS and EPSILON HEALTHCARE

If you would invest  2.65  in EPSILON HEALTHCARE LTD on October 5, 2024 and sell it today you would lose (1.90) from holding EPSILON HEALTHCARE LTD or give up 71.7% of portfolio value over 90 days.

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

YAMATO HOLDINGS  vs.  EPSILON HEALTHCARE LTD

YAMATO HOLDINGS

Risk-Adjusted Performance

0 of 100

Very Weak

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

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 YAMATO HOLDINGS and EPSILON HEALTHCARE

The main advantage of trading using opposite YAMATO HOLDINGS and EPSILON HEALTHCARE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YAMATO HOLDINGS 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 YAMATO HOLDINGS 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.