Correlation Between Eversafe Rubber and Choo Bee

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Can any of the company-specific risk be diversified away by investing in both Eversafe Rubber and Choo Bee 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 Eversafe Rubber and Choo Bee into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eversafe Rubber Bhd and Choo Bee Metal, you can compare the effects of market volatilities on Eversafe Rubber and Choo Bee 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 Eversafe Rubber with a short position of Choo Bee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eversafe Rubber and Choo Bee.

Diversification Opportunities for Eversafe Rubber and Choo Bee

EversafeChooDiversified AwayEversafeChooDiversified Away100%
0.31
  Correlation Coefficient

Weak diversification

The 3 months correlation between Eversafe and Choo is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Eversafe Rubber Bhd and Choo Bee Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Choo Bee Metal and Eversafe Rubber 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 Eversafe Rubber Bhd are associated (or correlated) with Choo Bee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Choo Bee Metal has no effect on the direction of Eversafe Rubber i.e., Eversafe Rubber and Choo Bee go up and down completely randomly.

Pair Corralation between Eversafe Rubber and Choo Bee

If you would invest  68.00  in Choo Bee Metal on November 25, 2024 and sell it today you would earn a total of  0.00  from holding Choo Bee Metal or generate 0.0% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthVery Weak
Accuracy94.74%
ValuesDaily Returns

Eversafe Rubber Bhd  vs.  Choo Bee Metal

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -10-50
JavaScript chart by amCharts 3.21.150190 5797
       Timeline  
Eversafe Rubber Bhd 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Eversafe Rubber Bhd are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Eversafe Rubber disclosed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.140.1450.150.1550.16
Choo Bee Metal 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Choo Bee Metal has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest conflicting performance, the Stock's basic indicators remain persistent and the latest mess on Wall Street may also be a sign of long-standing gains for the company institutional investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb0.670.680.690.70.710.720.730.740.75

Eversafe Rubber and Choo Bee Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-14.48-10.85-7.21-3.580.03.527.1610.814.4418.08 0.020.040.060.080.100.120.14
JavaScript chart by amCharts 3.21.150190 5797
       Returns  

Pair Trading with Eversafe Rubber and Choo Bee

The main advantage of trading using opposite Eversafe Rubber and Choo Bee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eversafe Rubber position performs unexpectedly, Choo Bee 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 Choo Bee will offset losses from the drop in Choo Bee's long position.
The idea behind Eversafe Rubber Bhd and Choo Bee Metal 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.

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