Correlation Between Echomarketing CoLtd and SillaJen
Can any of the company-specific risk be diversified away by investing in both Echomarketing CoLtd and SillaJen 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 Echomarketing CoLtd and SillaJen into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Echomarketing CoLtd and SillaJen, you can compare the effects of market volatilities on Echomarketing CoLtd and SillaJen 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 Echomarketing CoLtd with a short position of SillaJen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Echomarketing CoLtd and SillaJen.
Diversification Opportunities for Echomarketing CoLtd and SillaJen
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Echomarketing and SillaJen is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Echomarketing CoLtd and SillaJen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SillaJen and Echomarketing CoLtd 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 Echomarketing CoLtd are associated (or correlated) with SillaJen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SillaJen has no effect on the direction of Echomarketing CoLtd i.e., Echomarketing CoLtd and SillaJen go up and down completely randomly.
Pair Corralation between Echomarketing CoLtd and SillaJen
Assuming the 90 days trading horizon Echomarketing CoLtd is expected to generate 0.71 times more return on investment than SillaJen. However, Echomarketing CoLtd is 1.4 times less risky than SillaJen. It trades about -0.01 of its potential returns per unit of risk. SillaJen is currently generating about -0.04 per unit of risk. If you would invest 1,055,831 in Echomarketing CoLtd on December 13, 2024 and sell it today you would lose (155,831) from holding Echomarketing CoLtd or give up 14.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Echomarketing CoLtd vs. SillaJen
Performance |
| Timeline |
| Echomarketing CoLtd |
| SillaJen |
Echomarketing CoLtd and SillaJen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Echomarketing CoLtd and SillaJen
The main advantage of trading using opposite Echomarketing CoLtd and SillaJen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Echomarketing CoLtd position performs unexpectedly, SillaJen 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 SillaJen will offset losses from the drop in SillaJen's long position.| Echomarketing CoLtd vs. AfreecaTV Co | ||
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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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