Correlation Between Evergreen International and U Ming
Can any of the company-specific risk be diversified away by investing in both Evergreen International and U Ming 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 International and U Ming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Evergreen International Storage and U Ming Marine Transport, you can compare the effects of market volatilities on Evergreen International and U Ming 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 International with a short position of U Ming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Evergreen International and U Ming.
Diversification Opportunities for Evergreen International and U Ming
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Evergreen and 2606 is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Evergreen International Storag and U Ming Marine Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on U Ming Marine and Evergreen International 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 International Storage are associated (or correlated) with U Ming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of U Ming Marine has no effect on the direction of Evergreen International i.e., Evergreen International and U Ming go up and down completely randomly.
Pair Corralation between Evergreen International and U Ming
Assuming the 90 days trading horizon Evergreen International is expected to generate 1.41 times less return on investment than U Ming. But when comparing it to its historical volatility, Evergreen International Storage is 1.41 times less risky than U Ming. It trades about 0.02 of its potential returns per unit of risk. U Ming Marine Transport is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 5,090 in U Ming Marine Transport on October 24, 2024 and sell it today you would earn a total of 620.00 from holding U Ming Marine Transport or generate 12.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Evergreen International Storag vs. U Ming Marine Transport
Performance |
| Timeline |
| Evergreen International |
| U Ming Marine |
Evergreen International and U Ming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Evergreen International and U Ming
The main advantage of trading using opposite Evergreen International and U Ming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Evergreen International position performs unexpectedly, U Ming 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 U Ming will offset losses from the drop in U Ming's long position.| Evergreen International vs. Sincere Navigation Corp | Evergreen International vs. First Steamship Co | Evergreen International vs. Far Eastern Department | Evergreen International vs. China Container Terminal |
| U Ming vs. Sincere Navigation Corp | U Ming vs. Wan Hai Lines | U Ming vs. Yang Ming Marine | U Ming vs. Formosa Chemicals Fibre |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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