Correlation Between Evergreen Marine and Ampire
Can any of the company-specific risk be diversified away by investing in both Evergreen Marine and Ampire 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 Ampire 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 Ampire Co, you can compare the effects of market volatilities on Evergreen Marine and Ampire 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 Ampire. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen Marine and Ampire.
Diversification Opportunities for Evergreen Marine and Ampire
-0.37 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Evergreen and Ampire is -0.37. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen Marine Corp and Ampire Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ampire 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 Ampire. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ampire has no effect on the direction of Evergreen Marine i.e., Evergreen Marine and Ampire go up and down completely randomly.
Pair Corralation between Evergreen Marine and Ampire
Assuming the 90 days trading horizon Evergreen Marine Corp is expected to generate 4.17 times more return on investment than Ampire. However, Evergreen Marine is 4.17 times more volatile than Ampire Co. It trades about 0.07 of its potential returns per unit of risk. Ampire Co is currently generating about -0.34 per unit of risk. If you would invest 21,950 in Evergreen Marine Corp on September 14, 2024 and sell it today you would earn a total of 750.00 from holding Evergreen Marine Corp or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Evergreen Marine Corp vs. Ampire Co
Performance |
| Timeline |
| Evergreen Marine Corp |
| Ampire |
Evergreen Marine and Ampire Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergreen Marine and Ampire
The main advantage of trading using opposite Evergreen Marine and Ampire positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen Marine position performs unexpectedly, Ampire 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 Ampire will offset losses from the drop in Ampire'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 |
| Ampire vs. Asia Tech Image | Ampire vs. Emerging Display Technologies | Ampire vs. DRWu Skincare Co | Ampire vs. Lanner Electronics |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |