Correlation Between Evergreen Marine and Analog Integrations
Can any of the company-specific risk be diversified away by investing in both Evergreen Marine and Analog Integrations 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 Analog Integrations 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 Analog Integrations, you can compare the effects of market volatilities on Evergreen Marine and Analog Integrations 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 Analog Integrations. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen Marine and Analog Integrations.
Diversification Opportunities for Evergreen Marine and Analog Integrations
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Evergreen and Analog is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen Marine Corp and Analog Integrations in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Analog Integrations 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 Analog Integrations. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Analog Integrations has no effect on the direction of Evergreen Marine i.e., Evergreen Marine and Analog Integrations go up and down completely randomly.
Pair Corralation between Evergreen Marine and Analog Integrations
Assuming the 90 days trading horizon Evergreen Marine is expected to generate 2.07 times less return on investment than Analog Integrations. But when comparing it to its historical volatility, Evergreen Marine Corp is 1.46 times less risky than Analog Integrations. It trades about 0.27 of its potential returns per unit of risk. Analog Integrations is currently generating about 0.39 of returns per unit of risk over similar time horizon. If you would invest 9,350 in Analog Integrations on November 27, 2024 and sell it today you would earn a total of 1,900 from holding Analog Integrations or generate 20.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evergreen Marine Corp vs. Analog Integrations
Performance |
| Timeline |
| Evergreen Marine Corp |
| Analog Integrations |
Evergreen Marine and Analog Integrations Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergreen Marine and Analog Integrations
The main advantage of trading using opposite Evergreen Marine and Analog Integrations positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen Marine position performs unexpectedly, Analog Integrations 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 Analog Integrations will offset losses from the drop in Analog Integrations' 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 |
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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