Correlation Between Multi Retail and Epitomee Medical

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

By analyzing existing cross correlation between Multi Retail Group and Epitomee Medical, you can compare the effects of market volatilities on Multi Retail and Epitomee Medical 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 Multi Retail with a short position of Epitomee Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Multi Retail and Epitomee Medical.

Diversification Opportunities for Multi Retail and Epitomee Medical

0.18

Correlation Coefficient

Multi Retail  Epitomee Medical

Average diversification

The 3 months correlation between Multi and Epitomee is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Multi Retail Group and Epitomee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epitomee Medical and Multi Retail 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 Multi Retail Group are associated (or correlated) with Epitomee Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epitomee Medical has no effect on the direction of Multi Retail i.e., Multi Retail and Epitomee Medical go up and down completely randomly.

Pair Corralation between Multi Retail and Epitomee Medical

Assuming the 90 days trading horizon Multi Retail Group is expected to under-perform the Epitomee Medical. But the stock apears to be less risky and, when comparing its historical volatility, Multi Retail Group is 1.09 times less risky than Epitomee Medical. The stock trades about -0.04 of its potential returns per unit of risk. The Epitomee Medical is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest  84,670  in Epitomee Medical on April 25, 2025 and sell it today you would earn a total of  5,010  from holding Epitomee Medical or generate 5.92% return on investment over 90 days.

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

Multi Retail Group  vs.  Epitomee Medical

Multi Retail Group

Risk-Adjusted Performance

Very Weak

Over the last 90 days Multi Retail Group has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's technical and fundamental indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

Epitomee Medical

Risk-Adjusted Performance

Modest

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

Pair Trading with Multi Retail and Epitomee Medical

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

The idea behind Multi Retail Group and Epitomee Medical 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 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.