Correlation Between Eclat Textile and Silergy Corp
Can any of the company-specific risk be diversified away by investing in both Eclat Textile and Silergy Corp 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 Silergy Corp 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 Silergy Corp, you can compare the effects of market volatilities on Eclat Textile and Silergy Corp 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 Silergy Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eclat Textile and Silergy Corp.
Diversification Opportunities for Eclat Textile and Silergy Corp
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eclat and Silergy is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Eclat Textile Co and Silergy Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silergy Corp 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 Silergy Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silergy Corp has no effect on the direction of Eclat Textile i.e., Eclat Textile and Silergy Corp go up and down completely randomly.
Pair Corralation between Eclat Textile and Silergy Corp
Assuming the 90 days trading horizon Eclat Textile Co is expected to generate 1.03 times more return on investment than Silergy Corp. However, Eclat Textile is 1.03 times more volatile than Silergy Corp. It trades about 0.04 of its potential returns per unit of risk. Silergy Corp is currently generating about -0.35 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eclat Textile Co vs. Silergy Corp
Performance |
| Timeline |
| Eclat Textile |
| Silergy Corp |
Eclat Textile and Silergy Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eclat Textile and Silergy Corp
The main advantage of trading using opposite Eclat Textile and Silergy Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eclat Textile position performs unexpectedly, Silergy Corp 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 Silergy Corp will offset losses from the drop in Silergy Corp'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 |
| Silergy Corp vs. Novatek Microelectronics Corp | Silergy Corp vs. Realtek Semiconductor Corp | Silergy Corp vs. Aspeed Technology | Silergy Corp vs. Alchip Technologies |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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