Correlation Between EPlus and Sprinklr

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

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

Diversification Opportunities for EPlus and Sprinklr

-0.51

Correlation Coefficient

EPlus  Sprinklr

Excellent diversification

The 3 months correlation between EPlus and Sprinklr is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding ePlus inc and Sprinklr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sprinklr 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 Sprinklr. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sprinklr has no effect on the direction of EPlus i.e., EPlus and Sprinklr go up and down completely randomly.

Pair Corralation between EPlus and Sprinklr

Given the investment horizon of 90 days ePlus inc is expected to generate 1.77 times more return on investment than Sprinklr. However, EPlus is 1.77 times more volatile than Sprinklr. It trades about 0.15 of its potential returns per unit of risk. Sprinklr is currently generating about 0.05 per unit of risk. If you would invest  7,364  in ePlus inc on September 12, 2025 and sell it today you would earn a total of  1,838  from holding ePlus inc or generate 24.96% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

ePlus inc  vs.  Sprinklr

ePlus inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ePlus inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, EPlus unveiled solid returns over the last few months and may actually be approaching a breakup point.

Sprinklr

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Sprinklr are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Sprinklr is not utilizing all of its potentials. The newest stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with EPlus and Sprinklr

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

The idea behind ePlus inc and Sprinklr 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.