Correlation Between Evergreen Marine and Catcher Technology
Can any of the company-specific risk be diversified away by investing in both Evergreen Marine and Catcher Technology 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 Catcher Technology 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 Catcher Technology Co, you can compare the effects of market volatilities on Evergreen Marine and Catcher Technology 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 Catcher Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen Marine and Catcher Technology.
Diversification Opportunities for Evergreen Marine and Catcher Technology
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evergreen and Catcher is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen Marine Corp and Catcher Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Catcher Technology 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 Catcher Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Catcher Technology has no effect on the direction of Evergreen Marine i.e., Evergreen Marine and Catcher Technology go up and down completely randomly.
Pair Corralation between Evergreen Marine and Catcher Technology
Assuming the 90 days trading horizon Evergreen Marine Corp is expected to generate 1.06 times more return on investment than Catcher Technology. However, Evergreen Marine is 1.06 times more volatile than Catcher Technology Co. It trades about 0.24 of its potential returns per unit of risk. Catcher Technology Co is currently generating about -0.4 per unit of risk. If you would invest 20,600 in Evergreen Marine Corp on August 28, 2024 and sell it today you would earn a total of 2,200 from holding Evergreen Marine Corp or generate 10.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evergreen Marine Corp vs. Catcher Technology Co
Performance |
| Timeline |
| Evergreen Marine Corp |
| Catcher Technology |
Evergreen Marine and Catcher Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergreen Marine and Catcher Technology
The main advantage of trading using opposite Evergreen Marine and Catcher Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen Marine position performs unexpectedly, Catcher Technology 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 Catcher Technology will offset losses from the drop in Catcher Technology's long position.| Evergreen Marine vs. Sunny Friend Environmental | Evergreen Marine vs. TTET Union Corp | Evergreen Marine vs. ECOVE Environment Corp | Evergreen Marine vs. Yulon Finance Corp |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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