Correlation Between EMemory Technology and Grand Plastic
Can any of the company-specific risk be diversified away by investing in both EMemory Technology and Grand Plastic 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 EMemory Technology and Grand Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eMemory Technology and Grand Plastic Technology, you can compare the effects of market volatilities on EMemory Technology and Grand Plastic 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 EMemory Technology with a short position of Grand Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMemory Technology and Grand Plastic.
Diversification Opportunities for EMemory Technology and Grand Plastic
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between EMemory and Grand is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding eMemory Technology and Grand Plastic Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Plastic Technology and EMemory Technology 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 eMemory Technology are associated (or correlated) with Grand Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Plastic Technology has no effect on the direction of EMemory Technology i.e., EMemory Technology and Grand Plastic go up and down completely randomly.
Pair Corralation between EMemory Technology and Grand Plastic
Assuming the 90 days trading horizon EMemory Technology is expected to generate 2.22 times less return on investment than Grand Plastic. But when comparing it to its historical volatility, eMemory Technology is 1.18 times less risky than Grand Plastic. It trades about 0.05 of its potential returns per unit of risk. Grand Plastic Technology is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 58,276 in Grand Plastic Technology on September 12, 2024 and sell it today you would earn a total of 116,724 from holding Grand Plastic Technology or generate 200.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
eMemory Technology vs. Grand Plastic Technology
Performance |
| Timeline |
| eMemory Technology |
| Grand Plastic Technology |
EMemory Technology and Grand Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EMemory Technology and Grand Plastic
The main advantage of trading using opposite EMemory Technology and Grand Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMemory Technology position performs unexpectedly, Grand Plastic 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 Grand Plastic will offset losses from the drop in Grand Plastic's long position.| EMemory Technology vs. WIN Semiconductors | EMemory Technology vs. GlobalWafers Co | EMemory Technology vs. Novatek Microelectronics Corp | EMemory Technology vs. Ruentex Development Co |
| Grand Plastic vs. Sino American Silicon Products | Grand Plastic vs. Elan Microelectronics Corp | Grand Plastic vs. Greatek Electronics | Grand Plastic vs. Ruentex 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |