Correlation Between Electronics For and Ebix

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Can any of the company-specific risk be diversified away by investing in both Electronics For and Ebix 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 Electronics For and Ebix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Electronics For Imaging and Ebix Inc, you can compare the effects of market volatilities on Electronics For and Ebix 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 Electronics For with a short position of Ebix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Electronics For and Ebix.

Diversification Opportunities for Electronics For and Ebix

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between Electronics For and Ebix

If you would invest (100.00) in Electronics For Imaging on December 29, 2023 and sell it today you would earn a total of  100.00  from holding Electronics For Imaging or generate -100.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

Electronics For Imaging  vs.  Ebix Inc

 Performance 
       Timeline  
Electronics For Imaging 

Risk-Adjusted Performance

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Over the last 90 days Electronics For Imaging has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Electronics For is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.
Ebix Inc 

Risk-Adjusted Performance

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Modest
Over the last 90 days Ebix Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly unsteady forward indicators, Ebix showed solid returns over the last few months and may actually be approaching a breakup point.

Electronics For and Ebix Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Electronics For and Ebix

The main advantage of trading using opposite Electronics For and Ebix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Electronics For position performs unexpectedly, Ebix 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 Ebix will offset losses from the drop in Ebix's long position.
The idea behind Electronics For Imaging and Ebix Inc 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.

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