Correlation Between Eclat Textile and BH Global
Can any of the company-specific risk be diversified away by investing in both Eclat Textile and BH Global 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 BH Global 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 BH Global, you can compare the effects of market volatilities on Eclat Textile and BH Global 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 BH Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eclat Textile and BH Global.
Diversification Opportunities for Eclat Textile and BH Global
-0.35 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Eclat and 911608 is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding Eclat Textile Co and BH Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BH Global 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 BH Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BH Global has no effect on the direction of Eclat Textile i.e., Eclat Textile and BH Global go up and down completely randomly.
Pair Corralation between Eclat Textile and BH Global
Assuming the 90 days trading horizon Eclat Textile is expected to generate 31.86 times less return on investment than BH Global. But when comparing it to its historical volatility, Eclat Textile Co is 1.43 times less risky than BH Global. It trades about 0.0 of its potential returns per unit of risk. BH Global is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 341.00 in BH Global on September 12, 2024 and sell it today you would earn a total of 35.00 from holding BH Global or generate 10.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eclat Textile Co vs. BH Global
Performance |
| Timeline |
| Eclat Textile |
| BH Global |
Eclat Textile and BH Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eclat Textile and BH Global
The main advantage of trading using opposite Eclat Textile and BH Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eclat Textile position performs unexpectedly, BH Global 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 BH Global will offset losses from the drop in BH Global's long position.| Eclat Textile vs. Feng Tay Enterprises | Eclat Textile vs. Ruentex Development Co | Eclat Textile vs. WiseChip Semiconductor | Eclat Textile vs. Novatek Microelectronics Corp |
| BH Global vs. Neo Neon Holdings Limited | BH Global vs. Vietnam Manufacturing and | BH Global vs. Medtecs International | BH Global vs. Digital China Holdings |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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