Correlation Between E2open Parent and Model N

Can any of the company-specific risk be diversified away by investing in both E2open Parent and Model N 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 E2open Parent and Model N into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between E2open Parent Holdings and Model N, you can compare the effects of market volatilities on E2open Parent and Model N 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 E2open Parent with a short position of Model N. Check out your portfolio center. Please also check ongoing floating volatility patterns of E2open Parent and Model N.

Diversification Opportunities for E2open Parent and Model N

0.0

Correlation Coefficient

E2open Parent  Model N

Pay attention - limited upside

The 3 months correlation between E2open and Model is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E2open Parent Holdings and Model N in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Model N and E2open Parent 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 E2open Parent Holdings are associated (or correlated) with Model N. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Model N has no effect on the direction of E2open Parent i.e., E2open Parent and Model N go up and down completely randomly.

Pair Corralation between E2open Parent and Model N

If you would invest  208.00  in E2open Parent Holdings on February 22, 2025 and sell it today you would earn a total of  52.50  from holding E2open Parent Holdings or generate 25.24% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

E2open Parent Holdings  vs.  Model N

E2open Parent Holdings

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in E2open Parent Holdings are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, E2open Parent displayed solid returns over the last few months and may actually be approaching a breakup point.

Model N

Risk-Adjusted Performance

Very Weak

Over the last 90 days Model N has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy fundamental indicators, Model N is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with E2open Parent and Model N

The main advantage of trading using opposite E2open Parent and Model N positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E2open Parent position performs unexpectedly, Model N 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 Model N will offset losses from the drop in Model N's long position.

The idea behind E2open Parent Holdings and Model N 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 Directory module to find actively traded commodities issued by global exchanges.