Correlation Between ECloudvalley Digital and WinMate Communication
Can any of the company-specific risk be diversified away by investing in both ECloudvalley Digital and WinMate Communication 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 ECloudvalley Digital and WinMate Communication into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between eCloudvalley Digital Technology and WinMate Communication INC, you can compare the effects of market volatilities on ECloudvalley Digital and WinMate Communication 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 ECloudvalley Digital with a short position of WinMate Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of ECloudvalley Digital and WinMate Communication.
Diversification Opportunities for ECloudvalley Digital and WinMate Communication
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between ECloudvalley and WinMate is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding eCloudvalley Digital Technolog and WinMate Communication INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WinMate Communication INC and ECloudvalley Digital 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 eCloudvalley Digital Technology are associated (or correlated) with WinMate Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WinMate Communication INC has no effect on the direction of ECloudvalley Digital i.e., ECloudvalley Digital and WinMate Communication go up and down completely randomly.
Pair Corralation between ECloudvalley Digital and WinMate Communication
Assuming the 90 days trading horizon eCloudvalley Digital Technology is expected to under-perform the WinMate Communication. In addition to that, ECloudvalley Digital is 1.5 times more volatile than WinMate Communication INC. It trades about -0.03 of its total potential returns per unit of risk. WinMate Communication INC is currently generating about 0.33 per unit of volatility. If you would invest 13,800 in WinMate Communication INC on August 30, 2024 and sell it today you would earn a total of 1,300 from holding WinMate Communication INC or generate 9.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
eCloudvalley Digital Technolog vs. WinMate Communication INC
Performance |
| Timeline |
| eCloudvalley Digital |
| WinMate Communication INC |
ECloudvalley Digital and WinMate Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ECloudvalley Digital and WinMate Communication
The main advantage of trading using opposite ECloudvalley Digital and WinMate Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ECloudvalley Digital position performs unexpectedly, WinMate Communication 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 WinMate Communication will offset losses from the drop in WinMate Communication's long position.| ECloudvalley Digital vs. WinMate Communication INC | ECloudvalley Digital vs. Apex Biotechnology Corp | ECloudvalley Digital vs. Advanced Wireless Semiconductor | ECloudvalley Digital vs. Chunghwa Telecom Co |
| WinMate Communication vs. Hon Hai Precision | WinMate Communication vs. Delta Electronics | WinMate Communication vs. LARGAN Precision Co | WinMate Communication vs. E Ink Holdings |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |