Correlation Between Eugene Technology and TES
Can any of the company-specific risk be diversified away by investing in both Eugene Technology and TES 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 Eugene Technology and TES into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eugene Technology CoLtd and TES Co, you can compare the effects of market volatilities on Eugene Technology and TES 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 Eugene Technology with a short position of TES. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eugene Technology and TES.
Diversification Opportunities for Eugene Technology and TES
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Eugene and TES is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Eugene Technology CoLtd and TES Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TES Co and Eugene Technology 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 Eugene Technology CoLtd are associated (or correlated) with TES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TES Co has no effect on the direction of Eugene Technology i.e., Eugene Technology and TES go up and down completely randomly.
Pair Corralation between Eugene Technology and TES
Assuming the 90 days trading horizon Eugene Technology CoLtd is expected to generate 1.24 times more return on investment than TES. However, Eugene Technology is 1.24 times more volatile than TES Co. It trades about 0.02 of its potential returns per unit of risk. TES Co is currently generating about -0.02 per unit of risk. If you would invest 3,306,797 in Eugene Technology CoLtd on August 26, 2024 and sell it today you would earn a total of 228,203 from holding Eugene Technology CoLtd or generate 6.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eugene Technology CoLtd vs. TES Co
Performance |
| Timeline |
| Eugene Technology CoLtd |
| TES Co |
Eugene Technology and TES Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eugene Technology and TES
The main advantage of trading using opposite Eugene Technology and TES positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eugene Technology position performs unexpectedly, TES 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 TES will offset losses from the drop in TES's long position.| Eugene Technology vs. Korea Real Estate | Eugene Technology vs. Korea Ratings Co | Eugene Technology vs. IQuest Co | Eugene Technology vs. Wonbang Tech Co |
| TES vs. Wonik Ips Co | TES vs. Eugene Technology CoLtd | TES vs. SFA Engineering | TES vs. Tokai Carbon Korea |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |