Correlation Between EVS Broadcast and Ocean Harvest
Can any of the company-specific risk be diversified away by investing in both EVS Broadcast and Ocean Harvest 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 EVS Broadcast and Ocean Harvest into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EVS Broadcast Equipment and Ocean Harvest Technology, you can compare the effects of market volatilities on EVS Broadcast and Ocean Harvest 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 EVS Broadcast with a short position of Ocean Harvest. Check out your portfolio center. Please also check ongoing floating volatility patterns of EVS Broadcast and Ocean Harvest.
Diversification Opportunities for EVS Broadcast and Ocean Harvest
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between EVS and Ocean is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding EVS Broadcast Equipment and Ocean Harvest Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ocean Harvest Technology and EVS Broadcast 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 EVS Broadcast Equipment are associated (or correlated) with Ocean Harvest. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ocean Harvest Technology has no effect on the direction of EVS Broadcast i.e., EVS Broadcast and Ocean Harvest go up and down completely randomly.
Pair Corralation between EVS Broadcast and Ocean Harvest
Assuming the 90 days trading horizon EVS Broadcast Equipment is expected to generate 0.39 times more return on investment than Ocean Harvest. However, EVS Broadcast Equipment is 2.53 times less risky than Ocean Harvest. It trades about -0.1 of its potential returns per unit of risk. Ocean Harvest Technology is currently generating about -0.4 per unit of risk. If you would invest 3,100 in EVS Broadcast Equipment on October 28, 2024 and sell it today you would lose (60.00) from holding EVS Broadcast Equipment or give up 1.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
EVS Broadcast Equipment vs. Ocean Harvest Technology
Performance |
| Timeline |
| EVS Broadcast Equipment |
| Ocean Harvest Technology |
EVS Broadcast and Ocean Harvest Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EVS Broadcast and Ocean Harvest
The main advantage of trading using opposite EVS Broadcast and Ocean Harvest positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EVS Broadcast position performs unexpectedly, Ocean Harvest 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 Ocean Harvest will offset losses from the drop in Ocean Harvest's long position.| EVS Broadcast vs. Charter Communications Cl | EVS Broadcast vs. Zegona Communications Plc | EVS Broadcast vs. Beeks Trading | EVS Broadcast vs. Orient Telecoms |
| Ocean Harvest vs. Litigation Capital Management | Ocean Harvest vs. Ebro Foods | Ocean Harvest vs. Broadcom | Ocean Harvest vs. Associated British Foods |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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