Correlation Between Eclat Textile and Poya International
Can any of the company-specific risk be diversified away by investing in both Eclat Textile and Poya 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 Poya 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 Poya International Co, you can compare the effects of market volatilities on Eclat Textile and Poya 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 Poya International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eclat Textile and Poya International.
Diversification Opportunities for Eclat Textile and Poya International
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Eclat and Poya is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Eclat Textile Co and Poya International Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poya 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 Poya International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poya International has no effect on the direction of Eclat Textile i.e., Eclat Textile and Poya International go up and down completely randomly.
Pair Corralation between Eclat Textile and Poya International
Assuming the 90 days trading horizon Eclat Textile Co is expected to generate 3.45 times more return on investment than Poya International. However, Eclat Textile is 3.45 times more volatile than Poya International Co. It trades about 0.04 of its potential returns per unit of risk. Poya International Co is currently generating about -0.32 per unit of risk. If you would invest 54,300 in Eclat Textile Co on August 29, 2024 and sell it today you would earn a total of 900.00 from holding Eclat Textile Co or generate 1.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eclat Textile Co vs. Poya International Co
Performance |
| Timeline |
| Eclat Textile |
| Poya International |
Eclat Textile and Poya International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eclat Textile and Poya International
The main advantage of trading using opposite Eclat Textile and Poya International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eclat Textile position performs unexpectedly, Poya 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 Poya International will offset losses from the drop in Poya 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 |
| Poya International vs. Taiwan FamilyMart Co | Poya International vs. President Chain Store | Poya International vs. Eclat Textile Co | Poya International vs. Aspeed Technology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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