Correlation Between Evergreen Marine and Group Up
Can any of the company-specific risk be diversified away by investing in both Evergreen Marine and Group Up 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 Group Up 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 Group Up Industrial, you can compare the effects of market volatilities on Evergreen Marine and Group Up 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 Group Up. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen Marine and Group Up.
Diversification Opportunities for Evergreen Marine and Group Up
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Evergreen and Group is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen Marine Corp and Group Up Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Group Up Industrial 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 Group Up. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Group Up Industrial has no effect on the direction of Evergreen Marine i.e., Evergreen Marine and Group Up go up and down completely randomly.
Pair Corralation between Evergreen Marine and Group Up
Assuming the 90 days trading horizon Evergreen Marine Corp is expected to generate 0.85 times more return on investment than Group Up. However, Evergreen Marine Corp is 1.18 times less risky than Group Up. It trades about 0.11 of its potential returns per unit of risk. Group Up Industrial is currently generating about 0.08 per unit of risk. If you would invest 8,527 in Evergreen Marine Corp on September 2, 2024 and sell it today you would earn a total of 13,173 from holding Evergreen Marine Corp or generate 154.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evergreen Marine Corp vs. Group Up Industrial
Performance |
| Timeline |
| Evergreen Marine Corp |
| Group Up Industrial |
Evergreen Marine and Group Up Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergreen Marine and Group Up
The main advantage of trading using opposite Evergreen Marine and Group Up positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen Marine position performs unexpectedly, Group Up 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 Group Up will offset losses from the drop in Group Up'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 |
| Group Up vs. Far EasTone Telecommunications | Group Up vs. GeneFerm Biotechnology Co | Group Up vs. Tradetool Auto Co | Group Up vs. Level Biotechnology |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |