Correlation Between Amogreentech and Ecopro BM
Can any of the company-specific risk be diversified away by investing in both Amogreentech and Ecopro BM 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 Amogreentech and Ecopro BM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Amogreentech Co and Ecopro BM Co, you can compare the effects of market volatilities on Amogreentech and Ecopro BM 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 Amogreentech with a short position of Ecopro BM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amogreentech and Ecopro BM.
Diversification Opportunities for Amogreentech and Ecopro BM
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amogreentech and Ecopro is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Amogreentech Co and Ecopro BM Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ecopro BM and Amogreentech 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 Amogreentech Co are associated (or correlated) with Ecopro BM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ecopro BM has no effect on the direction of Amogreentech i.e., Amogreentech and Ecopro BM go up and down completely randomly.
Pair Corralation between Amogreentech and Ecopro BM
Assuming the 90 days trading horizon Amogreentech Co is expected to generate 1.02 times more return on investment than Ecopro BM. However, Amogreentech is 1.02 times more volatile than Ecopro BM Co. It trades about 0.29 of its potential returns per unit of risk. Ecopro BM Co is currently generating about 0.14 per unit of risk. If you would invest 573,000 in Amogreentech Co on November 27, 2024 and sell it today you would earn a total of 106,000 from holding Amogreentech Co or generate 18.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amogreentech Co vs. Ecopro BM Co
Performance |
| Timeline |
| Amogreentech |
| Ecopro BM |
Amogreentech and Ecopro BM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amogreentech and Ecopro BM
The main advantage of trading using opposite Amogreentech and Ecopro BM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amogreentech position performs unexpectedly, Ecopro BM 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 Ecopro BM will offset losses from the drop in Ecopro BM's long position.| Amogreentech vs. FNSTech Co | Amogreentech vs. Spolytech Co | Amogreentech vs. Dgb Financial | Amogreentech vs. Hana Financial |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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