Correlation Between Threes Company and Epoxy Base
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By analyzing existing cross correlation between Threes Company Media and Epoxy Base Electronic, you can compare the effects of market volatilities on Threes Company and Epoxy Base 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 Threes Company with a short position of Epoxy Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Threes Company and Epoxy Base.
Diversification Opportunities for Threes Company and Epoxy Base
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Threes and Epoxy is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Threes Company Media and Epoxy Base Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Epoxy Base Electronic and Threes Company 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 Threes Company Media are associated (or correlated) with Epoxy Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Epoxy Base Electronic has no effect on the direction of Threes Company i.e., Threes Company and Epoxy Base go up and down completely randomly.
Pair Corralation between Threes Company and Epoxy Base
Assuming the 90 days trading horizon Threes Company Media is expected to under-perform the Epoxy Base. In addition to that, Threes Company is 1.1 times more volatile than Epoxy Base Electronic. It trades about -0.33 of its total potential returns per unit of risk. Epoxy Base Electronic is currently generating about -0.11 per unit of volatility. If you would invest 626.00 in Epoxy Base Electronic on October 14, 2024 and sell it today you would lose (60.00) from holding Epoxy Base Electronic or give up 9.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Threes Company Media vs. Epoxy Base Electronic
Performance |
| Timeline |
| Threes Company |
| Epoxy Base Electronic |
Threes Company and Epoxy Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Threes Company and Epoxy Base
The main advantage of trading using opposite Threes Company and Epoxy Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Threes Company position performs unexpectedly, Epoxy Base 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 Epoxy Base will offset losses from the drop in Epoxy Base's long position.| Threes Company vs. Zhongrun Resources Investment | Threes Company vs. Henan Shuanghui Investment | Threes Company vs. Bomesc Offshore Engineering | Threes Company vs. Postal Savings Bank |
| Epoxy Base vs. Silkroad Visual Technology | Epoxy Base vs. Chengdu Xinzhu RoadBridge | Epoxy Base vs. Telling Telecommunication Holding | Epoxy Base vs. Tongyu Communication |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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