Correlation Between Est Global and AVer Information
Can any of the company-specific risk be diversified away by investing in both Est Global and AVer Information 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 AVer Information 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 AVer Information, you can compare the effects of market volatilities on Est Global and AVer Information 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 AVer Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Est Global and AVer Information.
Diversification Opportunities for Est Global and AVer Information
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Est and AVer is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Est Global Apparel and AVer Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVer Information 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 AVer Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVer Information has no effect on the direction of Est Global i.e., Est Global and AVer Information go up and down completely randomly.
Pair Corralation between Est Global and AVer Information
Assuming the 90 days trading horizon Est Global Apparel is expected to under-perform the AVer Information. But the stock apears to be less risky and, when comparing its historical volatility, Est Global Apparel is 1.09 times less risky than AVer Information. The stock trades about -0.28 of its potential returns per unit of risk. The AVer Information is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 4,130 in AVer Information on January 13, 2025 and sell it today you would lose (775.00) from holding AVer Information or give up 18.77% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Est Global Apparel vs. AVer Information
Performance |
| Timeline |
| Est Global Apparel |
| AVer Information |
Est Global and AVer Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Est Global and AVer Information
The main advantage of trading using opposite Est Global and AVer Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Est Global position performs unexpectedly, AVer Information 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 AVer Information will offset losses from the drop in AVer Information's long position.| Est Global vs. Sunspring Metal Corp | Est Global vs. WinMate Communication INC | Est Global vs. China Metal Products | Est Global vs. Tai Tung Communication |
| AVer Information vs. Information Technology Total | AVer Information vs. Eagle Cold Storage | AVer Information vs. Mitake Information | AVer Information vs. FarGlory 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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