Correlation Between E Lead and Sampo Corp
Can any of the company-specific risk be diversified away by investing in both E Lead and Sampo 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 E Lead and Sampo Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E Lead Electronic Co and Sampo Corp, you can compare the effects of market volatilities on E Lead and Sampo 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 E Lead with a short position of Sampo Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of E Lead and Sampo Corp.
Diversification Opportunities for E Lead and Sampo Corp
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 2497 and Sampo is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding E Lead Electronic Co and Sampo Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sampo Corp and E Lead 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 E Lead Electronic Co are associated (or correlated) with Sampo Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sampo Corp has no effect on the direction of E Lead i.e., E Lead and Sampo Corp go up and down completely randomly.
Pair Corralation between E Lead and Sampo Corp
Assuming the 90 days trading horizon E Lead Electronic Co is expected to generate 4.45 times more return on investment than Sampo Corp. However, E Lead is 4.45 times more volatile than Sampo Corp. It trades about 0.04 of its potential returns per unit of risk. Sampo Corp is currently generating about -0.01 per unit of risk. If you would invest 5,870 in E Lead Electronic Co on August 29, 2024 and sell it today you would earn a total of 600.00 from holding E Lead Electronic Co or generate 10.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
E Lead Electronic Co vs. Sampo Corp
Performance |
| Timeline |
| E Lead Electronic |
| Sampo Corp |
E Lead and Sampo Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E Lead and Sampo Corp
The main advantage of trading using opposite E Lead and Sampo Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E Lead position performs unexpectedly, Sampo 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 Sampo Corp will offset losses from the drop in Sampo Corp's long position.| E Lead vs. Weltrend Semiconductor | E Lead vs. Catcher Technology Co | E Lead vs. Cub Elecparts | E Lead vs. Elan Microelectronics Corp |
| Sampo Corp vs. Yulon Finance Corp | Sampo Corp vs. Taiwan Secom Co | Sampo Corp vs. Pou Chen Corp | Sampo Corp vs. Great Wall Enterprise |
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 CEOs Directory module to screen CEOs from public companies around the world.
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