Correlation Between Evergreen Marine and Chainqui Construction
Can any of the company-specific risk be diversified away by investing in both Evergreen Marine and Chainqui Construction 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 Chainqui Construction 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 Chainqui Construction Development, you can compare the effects of market volatilities on Evergreen Marine and Chainqui Construction 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 Chainqui Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen Marine and Chainqui Construction.
Diversification Opportunities for Evergreen Marine and Chainqui Construction
-0.79 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evergreen and Chainqui is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen Marine Corp and Chainqui Construction Developm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chainqui Construction 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 Chainqui Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chainqui Construction has no effect on the direction of Evergreen Marine i.e., Evergreen Marine and Chainqui Construction go up and down completely randomly.
Pair Corralation between Evergreen Marine and Chainqui Construction
Assuming the 90 days trading horizon Evergreen Marine Corp is expected to generate 1.7 times more return on investment than Chainqui Construction. However, Evergreen Marine is 1.7 times more volatile than Chainqui Construction Development. It trades about -0.04 of its potential returns per unit of risk. Chainqui Construction Development is currently generating about -0.27 per unit of risk. If you would invest 23,600 in Evergreen Marine Corp on September 23, 2024 and sell it today you would lose (550.00) from holding Evergreen Marine Corp or give up 2.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evergreen Marine Corp vs. Chainqui Construction Developm
Performance |
| Timeline |
| Evergreen Marine Corp |
| Chainqui Construction |
Evergreen Marine and Chainqui Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergreen Marine and Chainqui Construction
The main advantage of trading using opposite Evergreen Marine and Chainqui Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen Marine position performs unexpectedly, Chainqui Construction 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 Chainqui Construction will offset losses from the drop in Chainqui Construction'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 |
| Chainqui Construction vs. Yang Ming Marine | Chainqui Construction vs. Evergreen Marine Corp | Chainqui Construction vs. Eva Airways Corp | Chainqui Construction vs. U Ming Marine Transport |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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