Correlation Between Epoxy Base and Success Electronics
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By analyzing existing cross correlation between Epoxy Base Electronic and Success Electronics, you can compare the effects of market volatilities on Epoxy Base and Success Electronics 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 Epoxy Base with a short position of Success Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and Success Electronics.
Diversification Opportunities for Epoxy Base and Success Electronics
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Epoxy and Success is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base Electronic and Success Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Success Electronics and Epoxy Base 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 Epoxy Base Electronic are associated (or correlated) with Success Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Success Electronics has no effect on the direction of Epoxy Base i.e., Epoxy Base and Success Electronics go up and down completely randomly.
Pair Corralation between Epoxy Base and Success Electronics
Assuming the 90 days trading horizon Epoxy Base Electronic is expected to generate 1.22 times more return on investment than Success Electronics. However, Epoxy Base is 1.22 times more volatile than Success Electronics. It trades about 0.0 of its potential returns per unit of risk. Success Electronics is currently generating about -0.05 per unit of risk. If you would invest 628.00 in Epoxy Base Electronic on August 25, 2024 and sell it today you would lose (105.00) from holding Epoxy Base Electronic or give up 16.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. Success Electronics
Performance |
| Timeline |
| Epoxy Base Electronic |
| Success Electronics |
Epoxy Base and Success Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and Success Electronics
The main advantage of trading using opposite Epoxy Base and Success Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base position performs unexpectedly, Success Electronics 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 Success Electronics will offset losses from the drop in Success Electronics' long position.| Epoxy Base vs. Zijin Mining Group | Epoxy Base vs. Wanhua Chemical Group | Epoxy Base vs. Baoshan Iron Steel | Epoxy Base vs. Shandong Gold Mining |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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