Correlation Between Eclat Textile and Airtac International
Can any of the company-specific risk be diversified away by investing in both Eclat Textile and Airtac International 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 Eclat Textile and Airtac International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eclat Textile Co and Airtac International Group, you can compare the effects of market volatilities on Eclat Textile and Airtac International 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 Eclat Textile with a short position of Airtac International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eclat Textile and Airtac International.
Diversification Opportunities for Eclat Textile and Airtac International
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eclat and Airtac is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Eclat Textile Co and Airtac International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Airtac International and Eclat Textile 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 Eclat Textile Co are associated (or correlated) with Airtac International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Airtac International has no effect on the direction of Eclat Textile i.e., Eclat Textile and Airtac International go up and down completely randomly.
Pair Corralation between Eclat Textile and Airtac International
Assuming the 90 days trading horizon Eclat Textile Co is expected to generate 0.75 times more return on investment than Airtac International. However, Eclat Textile Co is 1.33 times less risky than Airtac International. It trades about 0.03 of its potential returns per unit of risk. Airtac International Group is currently generating about 0.0 per unit of risk. If you would invest 46,900 in Eclat Textile Co on November 28, 2024 and sell it today you would earn a total of 9,500 from holding Eclat Textile Co or generate 20.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eclat Textile Co vs. Airtac International Group
Performance |
| Timeline |
| Eclat Textile |
| Airtac International |
Eclat Textile and Airtac International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eclat Textile and Airtac International
The main advantage of trading using opposite Eclat Textile and Airtac International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eclat Textile position performs unexpectedly, Airtac International 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 Airtac International will offset losses from the drop in Airtac International's long position.| Eclat Textile vs. Makalot Industrial Co | Eclat Textile vs. Feng Tay Enterprises | Eclat Textile vs. President Chain Store | Eclat Textile vs. Uni President Enterprises Corp |
| Airtac International vs. Hiwin Technologies Corp | Airtac International vs. Advantech Co | Airtac International vs. Delta Electronics | Airtac International vs. Eclat Textile Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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