Correlation Between Evergreen Marine and Jetway Information
Can any of the company-specific risk be diversified away by investing in both Evergreen Marine and Jetway Information 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 Jetway Information 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 Jetway Information Co, you can compare the effects of market volatilities on Evergreen Marine and Jetway Information 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 Jetway Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen Marine and Jetway Information.
Diversification Opportunities for Evergreen Marine and Jetway Information
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evergreen and Jetway is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen Marine Corp and Jetway Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jetway Information 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 Jetway Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jetway Information has no effect on the direction of Evergreen Marine i.e., Evergreen Marine and Jetway Information go up and down completely randomly.
Pair Corralation between Evergreen Marine and Jetway Information
Assuming the 90 days trading horizon Evergreen Marine Corp is expected to under-perform the Jetway Information. In addition to that, Evergreen Marine is 1.47 times more volatile than Jetway Information Co. It trades about -0.15 of its total potential returns per unit of risk. Jetway Information Co is currently generating about -0.21 per unit of volatility. If you would invest 5,080 in Jetway Information Co on October 12, 2024 and sell it today you would lose (310.00) from holding Jetway Information Co or give up 6.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evergreen Marine Corp vs. Jetway Information Co
Performance |
| Timeline |
| Evergreen Marine Corp |
| Jetway Information |
Evergreen Marine and Jetway Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergreen Marine and Jetway Information
The main advantage of trading using opposite Evergreen Marine and Jetway Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen Marine position performs unexpectedly, Jetway Information 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 Jetway Information will offset losses from the drop in Jetway Information'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 |
| Jetway Information vs. Sesoda Corp | Jetway Information vs. First Insurance Co | Jetway Information vs. CTBC Financial Holding | Jetway Information vs. Dynamic Medical Technologies |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |