Correlation Between Easywell Biomedicals and GAME HOURS
Can any of the company-specific risk be diversified away by investing in both Easywell Biomedicals and GAME HOURS 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 GAME HOURS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Easywell Biomedicals and GAME HOURS, you can compare the effects of market volatilities on Easywell Biomedicals and GAME HOURS 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 GAME HOURS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Easywell Biomedicals and GAME HOURS.
Diversification Opportunities for Easywell Biomedicals and GAME HOURS
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Easywell and GAME is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Easywell Biomedicals and GAME HOURS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GAME HOURS 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 GAME HOURS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GAME HOURS has no effect on the direction of Easywell Biomedicals i.e., Easywell Biomedicals and GAME HOURS go up and down completely randomly.
Pair Corralation between Easywell Biomedicals and GAME HOURS
Assuming the 90 days trading horizon Easywell Biomedicals is expected to under-perform the GAME HOURS. In addition to that, Easywell Biomedicals is 1.67 times more volatile than GAME HOURS. It trades about -0.28 of its total potential returns per unit of risk. GAME HOURS is currently generating about -0.03 per unit of volatility. If you would invest 715.00 in GAME HOURS on September 1, 2024 and sell it today you would lose (18.00) from holding GAME HOURS or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Easywell Biomedicals vs. GAME HOURS
Performance |
| Timeline |
| Easywell Biomedicals |
| GAME HOURS |
Easywell Biomedicals and GAME HOURS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Easywell Biomedicals and GAME HOURS
The main advantage of trading using opposite Easywell Biomedicals and GAME HOURS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Easywell Biomedicals position performs unexpectedly, GAME HOURS 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 GAME HOURS will offset losses from the drop in GAME HOURS's long position.| Easywell Biomedicals vs. Universal Vision Biotechnology | Easywell Biomedicals vs. Excelsior Medical Co | Easywell Biomedicals vs. Hi Clearance | Easywell Biomedicals vs. Brighten Optix |
| GAME HOURS vs. Tainet Communication System | GAME HOURS vs. BenQ Medical Technology | GAME HOURS vs. Easywell Biomedicals | GAME HOURS vs. Shanghai Commercial Savings |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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