Correlation Between Made Tech and EGain
Can any of the company-specific risk be diversified away by investing in both Made Tech 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 Made Tech and EGain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Made Tech Group and eGain, you can compare the effects of market volatilities on Made Tech 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 Made Tech with a short position of EGain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Made Tech and EGain.
Diversification Opportunities for Made Tech and EGain
Very good diversification
The 3 months correlation between Made and EGain is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Made Tech Group and eGain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on eGain and Made Tech 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 Made Tech Group 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 Made Tech i.e., Made Tech and EGain go up and down completely randomly.
Pair Corralation between Made Tech and EGain
Assuming the 90 days trading horizon Made Tech Group is expected to under-perform the EGain. But the stock apears to be less risky and, when comparing its historical volatility, Made Tech Group is 2.34 times less risky than EGain. The stock trades about -0.22 of its potential returns per unit of risk. The eGain is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 788.00 in eGain on September 10, 2025 and sell it today you would earn a total of 168.00 from holding eGain or generate 21.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.44% |
| Values | Daily Returns |
Made Tech Group vs. eGain
Performance |
| Timeline |
| Made Tech Group |
| eGain |
Made Tech and EGain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Made Tech and EGain
The main advantage of trading using opposite Made Tech and EGain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Made Tech 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.| Made Tech vs. Ebro Foods | Made Tech vs. Games Workshop Group | Made Tech vs. Hilton Food Group | Made Tech vs. Axfood AB |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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