Correlation Between Evergreen Marine and Koge Micro
Can any of the company-specific risk be diversified away by investing in both Evergreen Marine and Koge Micro 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 Koge Micro 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 Koge Micro Tech, you can compare the effects of market volatilities on Evergreen Marine and Koge Micro 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 Koge Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen Marine and Koge Micro.
Diversification Opportunities for Evergreen Marine and Koge Micro
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evergreen and Koge is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen Marine Corp and Koge Micro Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Koge Micro Tech 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 Koge Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Koge Micro Tech has no effect on the direction of Evergreen Marine i.e., Evergreen Marine and Koge Micro go up and down completely randomly.
Pair Corralation between Evergreen Marine and Koge Micro
If you would invest 7,869 in Evergreen Marine Corp on November 2, 2024 and sell it today you would earn a total of 12,581 from holding Evergreen Marine Corp or generate 159.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Evergreen Marine Corp vs. Koge Micro Tech
Performance |
| Timeline |
| Evergreen Marine Corp |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Koge Micro Tech |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Evergreen Marine and Koge Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergreen Marine and Koge Micro
The main advantage of trading using opposite Evergreen Marine and Koge Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen Marine position performs unexpectedly, Koge Micro 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 Koge Micro will offset losses from the drop in Koge Micro's long position.The idea behind Evergreen Marine Corp and Koge Micro Tech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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