Correlation Between EPSILON HEALTHCARE and CSL

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

Diversification Opportunities for EPSILON HEALTHCARE and CSL

0.0

Correlation Coefficient

EPSILON HEALTHCARE  CSL

Pay attention - limited upside

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

Pair Corralation between EPSILON HEALTHCARE and CSL

If you would invest  13,680  in CSL Limited on May 17, 2025 and sell it today you would earn a total of  1,270  from holding CSL Limited or generate 9.28% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

EPSILON HEALTHCARE LTD  vs.  CSL Limited

EPSILON HEALTHCARE LTD

Risk-Adjusted Performance

Weakest

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.

CSL Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CSL Limited are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CSL may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with EPSILON HEALTHCARE and CSL

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

The idea behind EPSILON HEALTHCARE LTD and CSL Limited 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.