Correlation Between E Investment and Green Cross
Can any of the company-specific risk be diversified away by investing in both E Investment and Green Cross 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 E Investment and Green Cross into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Investment Development and Green Cross Medical, you can compare the effects of market volatilities on E Investment and Green Cross 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 E Investment with a short position of Green Cross. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Investment and Green Cross.
Diversification Opportunities for E Investment and Green Cross
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between 093230 and Green is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E Investment Development and Green Cross Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Green Cross Medical and E Investment 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 E Investment Development are associated (or correlated) with Green Cross. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Green Cross Medical has no effect on the direction of E Investment i.e., E Investment and Green Cross go up and down completely randomly.
Pair Corralation between E Investment and Green Cross
Assuming the 90 days trading horizon E Investment Development is expected to generate 1.23 times more return on investment than Green Cross. However, E Investment is 1.23 times more volatile than Green Cross Medical. It trades about 0.04 of its potential returns per unit of risk. Green Cross Medical is currently generating about -0.02 per unit of risk. If you would invest 100,500 in E Investment Development on September 3, 2024 and sell it today you would earn a total of 38,700 from holding E Investment Development or generate 38.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
E Investment Development vs. Green Cross Medical
Performance |
| Timeline |
| E Investment Development |
| Green Cross Medical |
E Investment and Green Cross Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Investment and Green Cross
The main advantage of trading using opposite E Investment and Green Cross positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Investment position performs unexpectedly, Green Cross 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 Green Cross will offset losses from the drop in Green Cross' long position.| E Investment vs. Dongsin Engineering Construction | E Investment vs. Doosan Fuel Cell | E Investment vs. Daishin Balance 1 | E Investment vs. Total Soft Bank |
| Green Cross vs. Samsung Card Co | Green Cross vs. EBEST Investment Securities | Green Cross vs. Koh Young Technology | Green Cross vs. Hansol Chemica |
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 Stocks Directory module to find actively traded stocks across global markets.
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