Correlation Between EPAM Systems and Edgewater Technology

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both EPAM Systems and Edgewater Technology 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 EPAM Systems and Edgewater Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EPAM Systems and Edgewater Technology, you can compare the effects of market volatilities on EPAM Systems and Edgewater Technology 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 EPAM Systems with a short position of Edgewater Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPAM Systems and Edgewater Technology.

Diversification Opportunities for EPAM Systems and Edgewater Technology

0.0
  Correlation Coefficient

Pay attention - limited upside

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

Pair Corralation between EPAM Systems and Edgewater Technology

If you would invest  29,722  in EPAM Systems on December 29, 2023 and sell it today you would lose (2,085) from holding EPAM Systems or give up 7.02% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy0.0%
ValuesDaily Returns

EPAM Systems  vs.  Edgewater Technology

 Performance 
       Timeline  
EPAM Systems 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days EPAM Systems has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of very healthy basic indicators, EPAM Systems is not utilizing all of its potentials. The latest stock price disarray, may contribute to short-term losses for the investors.
Edgewater Technology 

Risk-Adjusted Performance

0 of 100

 
Low
 
High
Very Weak
Over the last 90 days Edgewater Technology has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable technical and fundamental indicators, Edgewater Technology is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

EPAM Systems and Edgewater Technology Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with EPAM Systems and Edgewater Technology

The main advantage of trading using opposite EPAM Systems and Edgewater Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPAM Systems position performs unexpectedly, Edgewater Technology 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 Edgewater Technology will offset losses from the drop in Edgewater Technology's long position.
The idea behind EPAM Systems and Edgewater Technology 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Bonds Directory
Find actively traded corporate debentures issued by US companies
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Stock Screener
Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Piotroski F Score
Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals
Content Syndication
Quickly integrate customizable finance content to your own investment portal
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators