Correlation Between Amogreentech CoLtd and Ecopro BM
Can any of the company-specific risk be diversified away by investing in both Amogreentech CoLtd 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 CoLtd 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 CoLtd and Ecopro BM Co, you can compare the effects of market volatilities on Amogreentech CoLtd 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 CoLtd with a short position of Ecopro BM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Amogreentech CoLtd and Ecopro BM.
Diversification Opportunities for Amogreentech CoLtd and Ecopro BM
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Amogreentech and Ecopro is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Amogreentech CoLtd 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 CoLtd 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 CoLtd 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 CoLtd i.e., Amogreentech CoLtd and Ecopro BM go up and down completely randomly.
Pair Corralation between Amogreentech CoLtd and Ecopro BM
Assuming the 90 days trading horizon Amogreentech CoLtd is expected to under-perform the Ecopro BM. But the stock apears to be less risky and, when comparing its historical volatility, Amogreentech CoLtd is 2.29 times less risky than Ecopro BM. The stock trades about -0.17 of its potential returns per unit of risk. The Ecopro BM Co is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 12,050,000 in Ecopro BM Co on November 9, 2024 and sell it today you would earn a total of 220,000 from holding Ecopro BM Co or generate 1.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Amogreentech CoLtd vs. Ecopro BM Co
Performance |
| Timeline |
| Amogreentech CoLtd |
| Ecopro BM |
Amogreentech CoLtd and Ecopro BM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Amogreentech CoLtd and Ecopro BM
The main advantage of trading using opposite Amogreentech CoLtd and Ecopro BM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Amogreentech CoLtd 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 CoLtd vs. SM Entertainment Co | Amogreentech CoLtd vs. ChipsMedia | Amogreentech CoLtd vs. Dongbang Transport Logistics | Amogreentech CoLtd vs. MediaZen |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |