Correlation Between Epoxy Base and China Galaxy
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By analyzing existing cross correlation between Epoxy Base Electronic and China Galaxy Securities, you can compare the effects of market volatilities on Epoxy Base and China Galaxy 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 China Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and China Galaxy.
Diversification Opportunities for Epoxy Base and China Galaxy
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Epoxy and China is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base Electronic and China Galaxy Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Galaxy Securities 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 China Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Galaxy Securities has no effect on the direction of Epoxy Base i.e., Epoxy Base and China Galaxy go up and down completely randomly.
Pair Corralation between Epoxy Base and China Galaxy
Assuming the 90 days trading horizon Epoxy Base is expected to generate 1.25 times less return on investment than China Galaxy. In addition to that, Epoxy Base is 1.3 times more volatile than China Galaxy Securities. It trades about 0.02 of its total potential returns per unit of risk. China Galaxy Securities is currently generating about 0.04 per unit of volatility. If you would invest 972.00 in China Galaxy Securities on October 16, 2024 and sell it today you would earn a total of 375.00 from holding China Galaxy Securities or generate 38.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. China Galaxy Securities
Performance |
| Timeline |
| Epoxy Base Electronic |
| China Galaxy Securities |
Epoxy Base and China Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and China Galaxy
The main advantage of trading using opposite Epoxy Base and China Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base position performs unexpectedly, China Galaxy 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 China Galaxy will offset losses from the drop in China Galaxy's long position.| Epoxy Base vs. Inspur Software Co | Epoxy Base vs. Hangzhou Pinming Software | Epoxy Base vs. Digiwin Software Co | Epoxy Base vs. Kuangda Technology Group |
| China Galaxy vs. Hongrun Construction Group | China Galaxy vs. Oppein Home Group | China Galaxy vs. Jiugui Liquor Co | China Galaxy vs. Hunan Tyen Machinery |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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