Correlation Between MIND CTI and EGain

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

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

Diversification Opportunities for MIND CTI and EGain

-0.86

Correlation Coefficient

MIND CTI  EGain

Pay attention - limited upside

The 3 months correlation between MIND and EGain is -0.86. Overlapping area represents the amount of risk that can be diversified away by holding MIND CTI and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and MIND CTI 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 MIND CTI are associated (or correlated) with EGain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of eGain has no effect on the direction of MIND CTI i.e., MIND CTI and EGain go up and down completely randomly.

Pair Corralation between MIND CTI and EGain

Given the investment horizon of 90 days MIND CTI is expected to generate 0.39 times more return on investment than EGain. However, MIND CTI is 2.55 times less risky than EGain. It trades about 0.03 of its potential returns per unit of risk. eGain is currently generating about -0.02 per unit of risk. If you would invest  173.00  in MIND CTI on August 4, 2024 and sell it today you would earn a total of  23.00  from holding MIND CTI or generate 13.29% return on investment over 90 days.

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

MIND CTI  vs.  eGain

MIND CTI

Risk-Adjusted Performance

8 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in MIND CTI are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very fragile fundamental indicators, MIND CTI may actually be approaching a critical reversion point that can send shares even higher in December 2024.

eGain

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days eGain has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of uncertain performance in the last few months, the Stock's basic indicators remain very healthy which may send shares a bit higher in December 2024. The recent disarray may also be a sign of long period up-swing for the firm investors.

Pair Trading with MIND CTI and EGain

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

The idea behind MIND CTI and eGain 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..