Correlation Between Schwab International and EPWK Holdings

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

By analyzing existing cross correlation between Schwab International Equity and EPWK Holdings Ltd, you can compare the effects of market volatilities on Schwab International and EPWK Holdings 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 Schwab International with a short position of EPWK Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Schwab International and EPWK Holdings.

Diversification Opportunities for Schwab International and EPWK Holdings

-0.42

Correlation Coefficient

Schwab International  EPWK Holdings

Very good diversification

The 3 months correlation between Schwab and EPWK is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Schwab International Equity and EPWK Holdings Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPWK Holdings and Schwab International 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 Schwab International Equity are associated (or correlated) with EPWK Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPWK Holdings has no effect on the direction of Schwab International i.e., Schwab International and EPWK Holdings go up and down completely randomly.

Pair Corralation between Schwab International and EPWK Holdings

Given the investment horizon of 90 days Schwab International Equity is expected to generate 0.05 times more return on investment than EPWK Holdings. However, Schwab International Equity is 19.22 times less risky than EPWK Holdings. It trades about 0.14 of its potential returns per unit of risk. EPWK Holdings Ltd is currently generating about -0.14 per unit of risk. If you would invest  2,068  in Schwab International Equity on May 7, 2025 and sell it today you would earn a total of  136.00  from holding Schwab International Equity or generate 6.58% return on investment over 90 days.

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

Schwab International Equity  vs.  EPWK Holdings Ltd

Schwab International

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Schwab International Equity are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite nearly unsteady technical indicators, Schwab International may actually be approaching a critical reversion point that can send shares even higher in September 2025.

EPWK Holdings

Risk-Adjusted Performance

Weakest

Over the last 90 days EPWK Holdings Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain quite persistent which may send shares a bit higher in September 2025. The latest mess may also be a sign of long-standing up-swing for the company institutional investors.

Pair Trading with Schwab International and EPWK Holdings

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

The idea behind Schwab International Equity and EPWK Holdings Ltd 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.