Correlation Between Emerging Display and Chinese Maritime
Can any of the company-specific risk be diversified away by investing in both Emerging Display and Chinese Maritime 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 Emerging Display and Chinese Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Emerging Display Technologies and Chinese Maritime Transport, you can compare the effects of market volatilities on Emerging Display and Chinese Maritime 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 Emerging Display with a short position of Chinese Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emerging Display and Chinese Maritime.
Diversification Opportunities for Emerging Display and Chinese Maritime
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Emerging and Chinese is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Emerging Display Technologies and Chinese Maritime Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Maritime Tra and Emerging Display 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 Emerging Display Technologies are associated (or correlated) with Chinese Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Maritime Tra has no effect on the direction of Emerging Display i.e., Emerging Display and Chinese Maritime go up and down completely randomly.
Pair Corralation between Emerging Display and Chinese Maritime
Assuming the 90 days trading horizon Emerging Display Technologies is expected to generate 1.98 times more return on investment than Chinese Maritime. However, Emerging Display is 1.98 times more volatile than Chinese Maritime Transport. It trades about -0.01 of its potential returns per unit of risk. Chinese Maritime Transport is currently generating about -0.22 per unit of risk. If you would invest 2,670 in Emerging Display Technologies on October 13, 2024 and sell it today you would lose (20.00) from holding Emerging Display Technologies or give up 0.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Emerging Display Technologies vs. Chinese Maritime Transport
Performance |
| Timeline |
| Emerging Display Tec |
| Chinese Maritime Tra |
Emerging Display and Chinese Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emerging Display and Chinese Maritime
The main advantage of trading using opposite Emerging Display and Chinese Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emerging Display position performs unexpectedly, Chinese Maritime 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 Chinese Maritime will offset losses from the drop in Chinese Maritime's long position.| Emerging Display vs. WinMate Communication INC | Emerging Display vs. First Hotel Co | Emerging Display vs. FarGlory Hotel Co | Emerging Display vs. Far EasTone Telecommunications |
| Chinese Maritime vs. U Ming Marine Transport | Chinese Maritime vs. Sincere Navigation Corp | Chinese Maritime vs. Taiwan Navigation Co | Chinese Maritime vs. Huaku Development Co |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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