Correlation Between Eva Airways and Medigen Vaccine
Can any of the company-specific risk be diversified away by investing in both Eva Airways and Medigen Vaccine 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 Eva Airways and Medigen Vaccine into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eva Airways Corp and Medigen Vaccine Biologics, you can compare the effects of market volatilities on Eva Airways and Medigen Vaccine 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 Eva Airways with a short position of Medigen Vaccine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eva Airways and Medigen Vaccine.
Diversification Opportunities for Eva Airways and Medigen Vaccine
-0.88 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Eva and Medigen is -0.88. Overlapping area represents the amount of risk that can be diversified away by holding Eva Airways Corp and Medigen Vaccine Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Medigen Vaccine Biologics and Eva Airways 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 Eva Airways Corp are associated (or correlated) with Medigen Vaccine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Medigen Vaccine Biologics has no effect on the direction of Eva Airways i.e., Eva Airways and Medigen Vaccine go up and down completely randomly.
Pair Corralation between Eva Airways and Medigen Vaccine
Assuming the 90 days trading horizon Eva Airways Corp is expected to generate 0.79 times more return on investment than Medigen Vaccine. However, Eva Airways Corp is 1.27 times less risky than Medigen Vaccine. It trades about 0.35 of its potential returns per unit of risk. Medigen Vaccine Biologics is currently generating about -0.19 per unit of risk. If you would invest 3,750 in Eva Airways Corp on September 2, 2024 and sell it today you would earn a total of 405.00 from holding Eva Airways Corp or generate 10.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eva Airways Corp vs. Medigen Vaccine Biologics
Performance |
| Timeline |
| Eva Airways Corp |
| Medigen Vaccine Biologics |
Eva Airways and Medigen Vaccine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eva Airways and Medigen Vaccine
The main advantage of trading using opposite Eva Airways and Medigen Vaccine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eva Airways position performs unexpectedly, Medigen Vaccine 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 Medigen Vaccine will offset losses from the drop in Medigen Vaccine's long position.| Eva Airways vs. China Airlines | Eva Airways vs. Evergreen Marine Corp | Eva Airways vs. Yang Ming Marine | Eva Airways vs. China Steel Corp |
| Medigen Vaccine vs. TaiMed Biologics | Medigen Vaccine vs. Adimmune Corp | Medigen Vaccine vs. PharmaEngine |
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 Stocks Directory module to find actively traded stocks across global markets.
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