Correlation Between Evergreen Marine and Camellia Metal
Can any of the company-specific risk be diversified away by investing in both Evergreen Marine and Camellia Metal 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 Evergreen Marine and Camellia Metal into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evergreen Marine Corp and Camellia Metal Co, you can compare the effects of market volatilities on Evergreen Marine and Camellia Metal 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 Evergreen Marine with a short position of Camellia Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen Marine and Camellia Metal.
Diversification Opportunities for Evergreen Marine and Camellia Metal
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Evergreen and Camellia is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen Marine Corp and Camellia Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Camellia Metal and Evergreen Marine 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 Evergreen Marine Corp are associated (or correlated) with Camellia Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Camellia Metal has no effect on the direction of Evergreen Marine i.e., Evergreen Marine and Camellia Metal go up and down completely randomly.
Pair Corralation between Evergreen Marine and Camellia Metal
Assuming the 90 days trading horizon Evergreen Marine Corp is expected to generate 1.04 times more return on investment than Camellia Metal. However, Evergreen Marine is 1.04 times more volatile than Camellia Metal Co. It trades about 0.07 of its potential returns per unit of risk. Camellia Metal Co is currently generating about -0.14 per unit of risk. If you would invest 21,050 in Evergreen Marine Corp on September 3, 2024 and sell it today you would earn a total of 650.00 from holding Evergreen Marine Corp or generate 3.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evergreen Marine Corp vs. Camellia Metal Co
Performance |
| Timeline |
| Evergreen Marine Corp |
| Camellia Metal |
Evergreen Marine and Camellia Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergreen Marine and Camellia Metal
The main advantage of trading using opposite Evergreen Marine and Camellia Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen Marine position performs unexpectedly, Camellia Metal 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 Camellia Metal will offset losses from the drop in Camellia Metal's long position.| Evergreen Marine vs. Yang Ming Marine | Evergreen Marine vs. Wan Hai Lines | Evergreen Marine vs. Eva Airways Corp | Evergreen Marine vs. China Airlines |
| Camellia Metal vs. Catcher Technology Co | Camellia Metal vs. Evergreen Steel Corp | Camellia Metal vs. China Metal Products | Camellia Metal vs. Chernan Metal Industrial |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |