Correlation Between EPlay Digital and CN MODERN
Can any of the company-specific risk be diversified away by investing in both EPlay Digital and CN MODERN 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 EPlay Digital and CN MODERN into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ePlay Digital and CN MODERN DAIRY, you can compare the effects of market volatilities on EPlay Digital and CN MODERN 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 EPlay Digital with a short position of CN MODERN. Check out your portfolio center. Please also check ongoing floating volatility patterns of EPlay Digital and CN MODERN.
Diversification Opportunities for EPlay Digital and CN MODERN
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between EPlay and 07M is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding ePlay Digital and CN MODERN DAIRY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CN MODERN DAIRY and EPlay Digital 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 ePlay Digital are associated (or correlated) with CN MODERN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CN MODERN DAIRY has no effect on the direction of EPlay Digital i.e., EPlay Digital and CN MODERN go up and down completely randomly.
Pair Corralation between EPlay Digital and CN MODERN
If you would invest 9.25 in CN MODERN DAIRY on October 30, 2024 and sell it today you would earn a total of 1.75 from holding CN MODERN DAIRY or generate 18.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ePlay Digital vs. CN MODERN DAIRY
Performance |
| Timeline |
| ePlay Digital |
| CN MODERN DAIRY |
EPlay Digital and CN MODERN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EPlay Digital and CN MODERN
The main advantage of trading using opposite EPlay Digital and CN MODERN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EPlay Digital position performs unexpectedly, CN MODERN 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 CN MODERN will offset losses from the drop in CN MODERN's long position.| EPlay Digital vs. DXC Technology Co | EPlay Digital vs. Endeavour Mining PLC | EPlay Digital vs. X FAB Silicon Foundries | EPlay Digital vs. Kingdee International Software |
| CN MODERN vs. CHAMPION IRON | CN MODERN vs. Coffee Holding Co | CN MODERN vs. Micron Technology | CN MODERN vs. Check Point Software |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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