Correlation Between FRONTEO and EPAM Systems
Can any of the company-specific risk be diversified away by investing in both FRONTEO and EPAM Systems 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 FRONTEO and EPAM Systems into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FRONTEO and EPAM Systems, you can compare the effects of market volatilities on FRONTEO and EPAM Systems 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 FRONTEO with a short position of EPAM Systems. Check out your portfolio center. Please also check ongoing floating volatility patterns of FRONTEO and EPAM Systems.
Diversification Opportunities for FRONTEO and EPAM Systems
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between FRONTEO and EPAM is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding FRONTEO and EPAM Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EPAM Systems and FRONTEO 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 FRONTEO are associated (or correlated) with EPAM Systems. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EPAM Systems has no effect on the direction of FRONTEO i.e., FRONTEO and EPAM Systems go up and down completely randomly.
Pair Corralation between FRONTEO and EPAM Systems
If you would invest (100.00) in FRONTEO on January 26, 2024 and sell it today you would earn a total of 100.00 from holding FRONTEO or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
FRONTEO vs. EPAM Systems
Performance |
| Timeline |
| FRONTEO |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| EPAM Systems |
FRONTEO and EPAM Systems Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FRONTEO and EPAM Systems
The main advantage of trading using opposite FRONTEO and EPAM Systems positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FRONTEO position performs unexpectedly, EPAM Systems 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 EPAM Systems will offset losses from the drop in EPAM Systems' long position.| FRONTEO vs. KeyCorp | FRONTEO vs. Mill City Ventures | FRONTEO vs. Arrow Financial | FRONTEO vs. Hudson Pacific Properties |
| EPAM Systems vs. FiscalNote Holdings | EPAM Systems vs. Innodata | EPAM Systems vs. Aurora Innovation | EPAM Systems vs. Conduent |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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