Correlation Between Est Global and U Ming
Can any of the company-specific risk be diversified away by investing in both Est Global 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 Est Global and U Ming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Est Global Apparel and U Ming Marine Transport, you can compare the effects of market volatilities on Est Global 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 Est Global with a short position of U Ming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Est Global and U Ming.
Diversification Opportunities for Est Global and U Ming
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Est and 2606 is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Est Global Apparel 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 Est Global 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 Est Global Apparel 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 Est Global i.e., Est Global and U Ming go up and down completely randomly.
Pair Corralation between Est Global and U Ming
Assuming the 90 days trading horizon Est Global is expected to generate 3.34 times less return on investment than U Ming. But when comparing it to its historical volatility, Est Global Apparel is 3.25 times less risky than U Ming. It trades about 0.37 of its potential returns per unit of risk. U Ming Marine Transport is currently generating about 0.38 of returns per unit of risk over similar time horizon. If you would invest 5,650 in U Ming Marine Transport on November 28, 2024 and sell it today you would earn a total of 1,580 from holding U Ming Marine Transport or generate 27.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
Est Global Apparel vs. U Ming Marine Transport
Performance |
| Timeline |
| Est Global Apparel |
| U Ming Marine |
Est Global and U Ming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Est Global and U Ming
The main advantage of trading using opposite Est Global and U Ming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Est Global 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.| Est Global vs. MediaTek | Est Global vs. Ambassador Hotel | Est Global vs. Holiday Entertainment Co | Est Global vs. Chung Hwa Food |
| 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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