Correlation Between Est Global and HOYA Resort
Can any of the company-specific risk be diversified away by investing in both Est Global and HOYA Resort 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 HOYA Resort 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 HOYA Resort Hotel, you can compare the effects of market volatilities on Est Global and HOYA Resort 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 HOYA Resort. Check out your portfolio center. Please also check ongoing floating volatility patterns of Est Global and HOYA Resort.
Diversification Opportunities for Est Global and HOYA Resort
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Est and HOYA is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Est Global Apparel and HOYA Resort Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HOYA Resort Hotel 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 HOYA Resort. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HOYA Resort Hotel has no effect on the direction of Est Global i.e., Est Global and HOYA Resort go up and down completely randomly.
Pair Corralation between Est Global and HOYA Resort
Assuming the 90 days trading horizon Est Global Apparel is expected to generate 0.9 times more return on investment than HOYA Resort. However, Est Global Apparel is 1.11 times less risky than HOYA Resort. It trades about 0.01 of its potential returns per unit of risk. HOYA Resort Hotel is currently generating about 0.0 per unit of risk. If you would invest 1,867 in Est Global Apparel on August 30, 2024 and sell it today you would lose (97.00) from holding Est Global Apparel or give up 5.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Est Global Apparel vs. HOYA Resort Hotel
Performance |
| Timeline |
| Est Global Apparel |
| HOYA Resort Hotel |
Est Global and HOYA Resort Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Est Global and HOYA Resort
The main advantage of trading using opposite Est Global and HOYA Resort positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Est Global position performs unexpectedly, HOYA Resort 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 HOYA Resort will offset losses from the drop in HOYA Resort's long position.| Est Global vs. Far Eastern New | Est Global vs. Eclat Textile Co | Est Global vs. Ruentex Industries | Est Global vs. Formosa Taffeta Co |
| HOYA Resort vs. Formosa International Hotels | HOYA Resort vs. Ambassador Hotel | HOYA Resort vs. FDC International Hotels | HOYA Resort vs. First Hotel 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |