Correlation Between Evergreen Marine and Avalue Technology
Can any of the company-specific risk be diversified away by investing in both Evergreen Marine and Avalue 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 Avalue 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 Avalue Technology, you can compare the effects of market volatilities on Evergreen Marine and Avalue 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 Avalue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen Marine and Avalue Technology.
Diversification Opportunities for Evergreen Marine and Avalue Technology
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evergreen and Avalue is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen Marine Corp and Avalue Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Avalue 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 Avalue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Avalue Technology has no effect on the direction of Evergreen Marine i.e., Evergreen Marine and Avalue Technology go up and down completely randomly.
Pair Corralation between Evergreen Marine and Avalue Technology
Assuming the 90 days trading horizon Evergreen Marine Corp is expected to generate 0.98 times more return on investment than Avalue Technology. However, Evergreen Marine Corp is 1.02 times less risky than Avalue Technology. It trades about 0.09 of its potential returns per unit of risk. Avalue Technology is currently generating about 0.04 per unit of risk. If you would invest 8,335 in Evergreen Marine Corp on September 4, 2024 and sell it today you would earn a total of 13,765 from holding Evergreen Marine Corp or generate 165.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evergreen Marine Corp vs. Avalue Technology
Performance |
| Timeline |
| Evergreen Marine Corp |
| Avalue Technology |
Evergreen Marine and Avalue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergreen Marine and Avalue Technology
The main advantage of trading using opposite Evergreen Marine and Avalue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen Marine position performs unexpectedly, Avalue 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 Avalue Technology will offset losses from the drop in Avalue Technology's long position.| Evergreen Marine vs. Universal Microelectronics Co | Evergreen Marine vs. AVerMedia Technologies | Evergreen Marine vs. Symtek Automation Asia | Evergreen Marine vs. WiseChip Semiconductor |
| Avalue Technology vs. Quanta Computer | Avalue Technology vs. Elitegroup Computer Systems | Avalue Technology vs. WiseChip Semiconductor | Avalue Technology vs. Novatek Microelectronics 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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