Correlation Between EPSILON HEALTHCARE and AAC TECHNOLOGHLDGADR

Can any of the company-specific risk be diversified away by investing in both EPSILON HEALTHCARE and AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR, you can compare the effects of market volatilities on EPSILON HEALTHCARE and AAC TECHNOLOGHLDGADR 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 AAC TECHNOLOGHLDGADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPSILON HEALTHCARE and AAC TECHNOLOGHLDGADR.

Diversification Opportunities for EPSILON HEALTHCARE and AAC TECHNOLOGHLDGADR

0.0

Correlation Coefficient

EPSILON HEALTHCARE  AAC TECHNOLOGHLDGADR

Pay attention - limited upside

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

Pair Corralation between EPSILON HEALTHCARE and AAC TECHNOLOGHLDGADR

If you would invest  383.00  in AAC TECHNOLOGHLDGADR on April 24, 2025 and sell it today you would earn a total of  33.00  from holding AAC TECHNOLOGHLDGADR or generate 8.62% return on investment over 90 days.

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

EPSILON HEALTHCARE LTD  vs.  AAC TECHNOLOGHLDGADR

EPSILON HEALTHCARE LTD

Risk-Adjusted Performance

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.

AAC TECHNOLOGHLDGADR

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in AAC TECHNOLOGHLDGADR are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, AAC TECHNOLOGHLDGADR may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with EPSILON HEALTHCARE and AAC TECHNOLOGHLDGADR

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

The idea behind EPSILON HEALTHCARE LTD and AAC TECHNOLOGHLDGADR 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 Transaction History module to view history of all your transactions and understand their impact on performance.