Correlation Between Easywell Biomedicals and Fun Yours
Can any of the company-specific risk be diversified away by investing in both Easywell Biomedicals and Fun Yours 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 Easywell Biomedicals and Fun Yours into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Easywell Biomedicals and Fun Yours Technology, you can compare the effects of market volatilities on Easywell Biomedicals and Fun Yours 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 Easywell Biomedicals with a short position of Fun Yours. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easywell Biomedicals and Fun Yours.
Diversification Opportunities for Easywell Biomedicals and Fun Yours
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Easywell and Fun is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Easywell Biomedicals and Fun Yours Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fun Yours Technology and Easywell Biomedicals 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 Easywell Biomedicals are associated (or correlated) with Fun Yours. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fun Yours Technology has no effect on the direction of Easywell Biomedicals i.e., Easywell Biomedicals and Fun Yours go up and down completely randomly.
Pair Corralation between Easywell Biomedicals and Fun Yours
Assuming the 90 days trading horizon Easywell Biomedicals is expected to generate 9.77 times less return on investment than Fun Yours. But when comparing it to its historical volatility, Easywell Biomedicals is 2.8 times less risky than Fun Yours. It trades about 0.01 of its potential returns per unit of risk. Fun Yours Technology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 4,654 in Fun Yours Technology on September 3, 2024 and sell it today you would earn a total of 356.00 from holding Fun Yours Technology or generate 7.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easywell Biomedicals vs. Fun Yours Technology
Performance |
| Timeline |
| Easywell Biomedicals |
| Fun Yours Technology |
Easywell Biomedicals and Fun Yours Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easywell Biomedicals and Fun Yours
The main advantage of trading using opposite Easywell Biomedicals and Fun Yours positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easywell Biomedicals position performs unexpectedly, Fun Yours 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 Fun Yours will offset losses from the drop in Fun Yours' long position.| Easywell Biomedicals vs. StShine Optical Co | Easywell Biomedicals vs. Bioteque | Easywell Biomedicals vs. TTY Biopharm Co | Easywell Biomedicals vs. Apex Biotechnology Corp |
| Fun Yours vs. Adata Technology Co | Fun Yours vs. Fubon Financial Holding | Fun Yours vs. Wistron Information Technology | Fun Yours vs. Easywell Biomedicals |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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