Correlation Between Data International and EirGenix
Can any of the company-specific risk be diversified away by investing in both Data International and EirGenix 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 Data International and EirGenix into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Data International Co and EirGenix, you can compare the effects of market volatilities on Data International and EirGenix 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 Data International with a short position of EirGenix. Check out your portfolio center. Please also check ongoing floating volatility patterns of Data International and EirGenix.
Diversification Opportunities for Data International and EirGenix
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Data and EirGenix is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Data International Co and EirGenix in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EirGenix and Data International 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 Data International Co are associated (or correlated) with EirGenix. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EirGenix has no effect on the direction of Data International i.e., Data International and EirGenix go up and down completely randomly.
Pair Corralation between Data International and EirGenix
Assuming the 90 days trading horizon Data International Co is expected to under-perform the EirGenix. In addition to that, Data International is 2.05 times more volatile than EirGenix. It trades about -0.28 of its total potential returns per unit of risk. EirGenix is currently generating about 0.35 per unit of volatility. If you would invest 6,800 in EirGenix on October 14, 2024 and sell it today you would earn a total of 990.00 from holding EirGenix or generate 14.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Data International Co vs. EirGenix
Performance |
| Timeline |
| Data International |
| EirGenix |
Data International and EirGenix Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Data International and EirGenix
The main advantage of trading using opposite Data International and EirGenix positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Data International position performs unexpectedly, EirGenix 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 EirGenix will offset losses from the drop in EirGenix's long position.| Data International vs. Voltronic Power Technology | Data International vs. Space Shuttle Hi Tech | Data International vs. Hi Lai Foods Co | Data International vs. Min Aik Technology |
| EirGenix vs. Otsuka Information Technology | EirGenix vs. WinMate Communication INC | EirGenix vs. Data International Co | EirGenix vs. AVer Information |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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