Correlation Between Defentect and Epazz

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

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

Diversification Opportunities for Defentect and Epazz

0.04

Correlation Coefficient

Defentect  Epazz

Significant diversification

The 3 months correlation between Defentect and Epazz is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Defentect Group and Epazz Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epazz Inc and Defentect 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 Defentect Group are associated (or correlated) with Epazz. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epazz Inc has no effect on the direction of Defentect i.e., Defentect and Epazz go up and down completely randomly.

Pair Corralation between Defentect and Epazz

Given the investment horizon of 90 days Defentect Group is expected to under-perform the Epazz. But the pink sheet apears to be less risky and, when comparing its historical volatility, Defentect Group is 6.56 times less risky than Epazz. The pink sheet trades about -0.02 of its potential returns per unit of risk. The Epazz Inc is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  2.88  in Epazz Inc on May 13, 2025 and sell it today you would earn a total of  5.33  from holding Epazz Inc or generate 185.07% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Defentect Group  vs.  Epazz Inc

Defentect Group

Risk-Adjusted Performance

Weakest

Over the last 90 days Defentect Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Defentect is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Epazz Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Epazz Inc are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, Epazz showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Defentect and Epazz

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

The idea behind Defentect Group and Epazz 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.