Correlation Between EPlus and Evertec
Can any of the company-specific risk be diversified away by investing in both EPlus and Evertec 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 EPlus and Evertec into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ePlus inc and Evertec, you can compare the effects of market volatilities on EPlus and Evertec 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 EPlus with a short position of Evertec. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPlus and Evertec.
Diversification Opportunities for EPlus and Evertec
Very good diversification
The 3 months correlation between EPlus and Evertec is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding ePlus inc and Evertec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evertec and EPlus 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 ePlus inc are associated (or correlated) with Evertec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evertec has no effect on the direction of EPlus i.e., EPlus and Evertec go up and down completely randomly.
Pair Corralation between EPlus and Evertec
Given the investment horizon of 90 days ePlus inc is expected to generate 1.52 times more return on investment than Evertec. However, EPlus is 1.52 times more volatile than Evertec. It trades about 0.15 of its potential returns per unit of risk. Evertec is currently generating about -0.21 per unit of risk. If you would invest 7,180 in ePlus inc on August 17, 2025 and sell it today you would earn a total of 1,842 from holding ePlus inc or generate 25.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
ePlus inc vs. Evertec
Performance |
| Timeline |
| ePlus inc |
| Evertec |
EPlus and Evertec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPlus and Evertec
The main advantage of trading using opposite EPlus and Evertec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPlus position performs unexpectedly, Evertec 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 Evertec will offset losses from the drop in Evertec's long position.The idea behind ePlus inc and Evertec 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.| Evertec vs. Teradata Corp | Evertec vs. Liveramp Holdings | Evertec vs. NetScout Systems | Evertec vs. Pagaya Technologies |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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