Correlation Between EPSILON HEALTHCARE and ACCO BRANDS

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

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

Diversification Opportunities for EPSILON HEALTHCARE and ACCO BRANDS

0.0

Correlation Coefficient

EPSILON HEALTHCARE  ACCO BRANDS

Pay attention - limited upside

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

Pair Corralation between EPSILON HEALTHCARE and ACCO BRANDS

If you would invest  466.00  in ACCO BRANDS on September 12, 2024 and sell it today you would earn a total of  124.00  from holding ACCO BRANDS or generate 26.61% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.92%
Values	Daily Returns

EPSILON HEALTHCARE LTD  vs.  ACCO BRANDS

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.

ACCO BRANDS

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ACCO BRANDS are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather uncertain fundamental drivers, ACCO BRANDS exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EPSILON HEALTHCARE and ACCO BRANDS

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

The idea behind EPSILON HEALTHCARE LTD and ACCO BRANDS 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.