Correlation Between ECHO INVESTMENT and OPEN HOUSE
Can any of the company-specific risk be diversified away by investing in both ECHO INVESTMENT and OPEN HOUSE 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 ECHO INVESTMENT and OPEN HOUSE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ECHO INVESTMENT ZY and OPEN HOUSE GROUP, you can compare the effects of market volatilities on ECHO INVESTMENT and OPEN HOUSE 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 ECHO INVESTMENT with a short position of OPEN HOUSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECHO INVESTMENT and OPEN HOUSE.
Diversification Opportunities for ECHO INVESTMENT and OPEN HOUSE
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between ECHO and OPEN is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding ECHO INVESTMENT ZY and OPEN HOUSE GROUP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OPEN HOUSE GROUP and ECHO INVESTMENT 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 ECHO INVESTMENT ZY are associated (or correlated) with OPEN HOUSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OPEN HOUSE GROUP has no effect on the direction of ECHO INVESTMENT i.e., ECHO INVESTMENT and OPEN HOUSE go up and down completely randomly.
Pair Corralation between ECHO INVESTMENT and OPEN HOUSE
Assuming the 90 days horizon ECHO INVESTMENT is expected to generate 1.72 times less return on investment than OPEN HOUSE. But when comparing it to its historical volatility, ECHO INVESTMENT ZY is 1.24 times less risky than OPEN HOUSE. It trades about 0.07 of its potential returns per unit of risk. OPEN HOUSE GROUP is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,360 in OPEN HOUSE GROUP on September 3, 2024 and sell it today you would earn a total of 120.00 from holding OPEN HOUSE GROUP or generate 3.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ECHO INVESTMENT ZY vs. OPEN HOUSE GROUP
Performance |
| Timeline |
| ECHO INVESTMENT ZY |
| OPEN HOUSE GROUP |
ECHO INVESTMENT and OPEN HOUSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECHO INVESTMENT and OPEN HOUSE
The main advantage of trading using opposite ECHO INVESTMENT and OPEN HOUSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECHO INVESTMENT position performs unexpectedly, OPEN HOUSE 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 OPEN HOUSE will offset losses from the drop in OPEN HOUSE's long position.| ECHO INVESTMENT vs. GuocoLand Limited | ECHO INVESTMENT vs. Superior Plus Corp | ECHO INVESTMENT vs. NMI Holdings | ECHO INVESTMENT vs. Origin Agritech |
| OPEN HOUSE vs. ADRIATIC METALS LS 013355 | OPEN HOUSE vs. MAVEN WIRELESS SWEDEN | OPEN HOUSE vs. Chunghwa Telecom Co | OPEN HOUSE vs. Gamma Communications plc |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |